[2014]DLSC2921 • July 31, 2014 • Supreme Court •
NDK FINANCIAL SERVICES LTD. vs. HAROLD NTORINKANSAH AND OTHERS
NDK Financial Services Ltd. (Plaintiff) extended credit facilities to two companies controlled by Harold Ntorinkansah (1st Defendant). The credit facilities required repayment on a monthly schedule and were secured by credit guarantee bonds issued by Glico Insurance (2nd Defendant). The bonds guaranteed repayment in case of default. The 1st Defendant defaulted on repayments, prompting NDK to sue for recovery. Glico refused to honor the bonds, alleging fraud and collusion and claiming the bonds were invalid under the Insurance Act, 2006 (Act 724) due to uncertainty of liability amounts.
read moreATUGUBA, JSC (FOR THE MAJORITY) This is an appeal by only the 2nd Defendant/Appellant/Respondent against the judgment of the Court of Appeal dated the 15th day of November, 2012. The only part of the decision complained of as per the Notice of Appeal is “The part of the judgment allowing ground (a) of the grounds of appeal.” The grounds of appeal are per the said Notice of Appeal as follows: “(a) the learned Justices of the Court of Appeal, erred in law when they held that Sub-section (1) of Section 44 of the Insurance Act, Act 724 is not limited to contracts of insurance created under the Motor Vehicle (Third Party Insurance) Act but every contractor (sic) of insurance entered into by the insurer after the commencement of Insurance Act, Act 724 (b) The learned Justices of the Court of Appeal erred in law when they held that the credit guarantee bonds issued in favour of the plaintiff/Respondent by 2nd Defendant/Appellant were contracts of insurance. (c) The learned Just...