THE REPUBLIC vs. THE HIGH COURT (COMMERCIAL DIVISION) ACCRA EX PARTE THE TRUST BANK LTD AMPOMAH PHOTO LAB LTD & 3 ORS

The Trust Bank Ltd initiated a suit in the Commercial Division of the High Court against Ampomah Photo Lab Ltd and others regarding a loan transaction. The parties settled and recorded their agreement in a consent judgment. A dispute later arose concerning the interest rate applicable under the consent judgment, which did not specify the interest rate. The bank entered judgment claiming interest at 35% per annum, which the defendants contested. The defendants sought to set aside the consent judgment due to this dispute. The trial judge refused to set aside the consent judgment, holding that it could not be unilaterally varied. The defendants then filed a fresh action challenging the interest rate, which the trial judge allowed to proceed. The bank sought supervisory intervention from the Supreme Court, arguing the High Court lacked jurisdiction to entertain the fresh action as it amounted to sitting in judgment over a coordinate High Court's final judgment.

DR. DATE-BAH JSC: The Facts What is in issue in this suit is the jurisdiction of the High Court to hear a fresh action challenging an aspect of a consent judgment entered by a court of coordinate jurisdiction. The applicant bank brought action in the Commercial Division of the High Court against the interested parties in this suit in respect of a loan transaction. The parties to that suit agreed to settle their dispute and their agreement was embodied in a consent judgment of the Commercial Division of the High Court. Subsequently, a dispute arose between the parties as to an aspect of that consent judgment. The writ which had commenced the suit that had been settled was indorsed with claims for: (a) the sum of 1,381,279,658.17 cedis, being loan and overdraft facility granted to the first defendant and guaranteed by the second, third and fourth defendants; (b) interest on the sum of 1,381,279,658.17 from 5th November 2004 until date of final payment. Thus, the indorsement did...