GHANA COMMERCIAL BANK (PLAINTIFF/RESPONDENT) vs. DAKMAK RASHWAN CHEMICAL INDUSTRY & 6 ORS. (DEFENDANTS/APPELLANTS)

The plaintiff/respondent, Ghana Commercial Bank, granted a 120-day deferred letter of credit facility of US$1,000,000 to the 1st defendant/appellant on 27 February 1998, secured by a landed property and guarantees from other defendants. The 1st defendant/appellant failed to repay the debt on the due date. After formal demand and non-payment, the plaintiff commenced action for recovery of the outstanding amount including interest. The defendants/appellants admitted the facility and security but claimed a compromise had been reached between 1999 and 2000, whereby the debt was classified as a bad debt and settled by payment of a lesser sum, with the plaintiff returning security documents. The plaintiff filed interrogatories to clarify these claims, which the trial court ordered answered. The defendants/appellants appealed against the order to answer interrogatories.

QUAYE, 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 ....