[1999]DLCA282 • May 13, 1999 • Court of Appeal
GHANA COMMERCIAL BANK LTD vs. NAOS HOLDINGS LTD
The plaintiff, Ghana Commercial Bank Ltd, claimed to be holders in due course of five promissory notes originally issued by the defendants, Naos Holdings Ltd, in favor of Sabat Motors Ltd to the order of Eaglet Corporation Ltd. The notes were dishonored upon presentation. The plaintiffs sought a court declaration via originating summons regarding their entitlement to payment with interest. The defendants challenged the process, alleging serious factual disputes including breach of contract, repudiation of the notes, lack of consideration, and mala fides by the plaintiffs.
read moreJUDGMENT OF BENIN JA. The question raised in the court below was whether the originating process adopted by the plaintiffs in seeking redress of a grievance it had against the defendants was appropriate. The plaintiffs claimed to be the holders in due course of five promissory notes issued by the defendants in favour of a company called Sabat Motors to the order of Eaglet Corporation Ltd. The plaintiffs’ came into the picture apparently because Eaglet Corporation indorsed the promissory notes in their favour, but which were dishonoured by the defendants upon presentation for payment on the due date. The plaintiffs went to the High Court by way of an originating summons seeking what happens to be the court’s construction of these instruments as to whether by them they were entitled to payment with interest at the current bank rate. The defendants filed an application to strike out this originating process on the grounds that there are several facts in dispute which make the pr...