[2007]DLCA6468 • October 26, 2007 • Court of Appeal
GHANA COMMERCIAL BANK vs. DAKMAK RASHWAN CHEMICAL INDUSTRY & 6 ORS.
The plaintiff, Ghana Commercial Bank, granted a 120-day deferred letter of credit facility of US$1,000,000 to the 1st defendant/appellant, Dakmak Rashwan Chemical Industry, secured by a landed property and guarantees from other defendants. The 1st defendant/appellant failed to repay the debt on the due date. The plaintiff demanded payment, and upon failure to pay, commenced action to recover the outstanding amount including interest. The defendants/appellants admitted the facility but claimed a compromise had been reached where the debt was classified as a loss and settled by payment of a lesser sum, with the plaintiff returning security documents and guarantees to them.
read moreQUAYE, JA: In the cause that is still pending final determination in the trial High Court (Fast Track) the plaintiff/respondents, who are a corporate body, established under the laws of Ghana to engage in the banking business, commenced the action by writ of summons on 5th April 2005, for the recovery of ¢18,033.477,450.14 which they alleged was the outstanding unpaid amount including interest on a 120 days deferred letter of credit facility of US$1,000,000.00 they granted the 1st Defendant/appellant on 27th February 1998. The facility was valid for 24 months, with a condition for review at six months intervals. The said facility was secured by the 1st Defendant/appellant with a landed property better described as Plot No. 56 Ring Road North Industrial Area, Accra belonging to the 2nd defendant/appellant. In addition the 3rd, 4th, 5th, 6th and 7th defendants/appellants executed a joint guarantee for the facility. On the due date the 1st Defendant/appellant failed to liquidate their ....