[2017]DLHC17349 • November 7, 2017 • High Court
NTHC LTD vs. GHANA COCOA BOARD
The Plaintiff, NTHC Ltd, provided unconditional guarantees to Ghana Cocoa Board (Defendant) for seed fund advances to Diaby Ltd, a licensed cocoa buyer, for multiple cocoa seasons (2010/2011 to 2013/2014). Diaby Ltd defaulted on payments totaling over GH¢14 million. The Defendant offset GH¢9,700,000 of the 2012/2013 seed fund to cover previous debts owed by Diaby Ltd without Plaintiff's consent. Plaintiff alleged this offset was unlawful and sought declarations and refund. Defendant counterclaimed for payment of outstanding debts and interest, asserting Plaintiff had acknowledged the debt and entered into an agreement to extend payment which Plaintiff later repudiated.
read moreJUDGMENT In a writ issued out of the Registry of this Court, the Plaintiff claimed the following reliefs: i. A declaration that the arrangement between Defendant and Diaby Ltd which led to the use of GH¢9,700,000.00 of the seed fund paid to Diaby Ltd to offset previous debts owed the defendant is an unlawful and unethical business practice. ii. A declaration that the decision by defendant to illegally deduct the outstanding debt of GH¢9,700,000.00 is unilateral, capricious and arbitrary insofar as it did not relate to the guarantee issued by the plaintiff for the 2012/13 season. iii. An order directed at the defendant for the immediate refund of the sum of GH¢9,700,000.00 iv. Interest on the amount of GH¢9,700,000.00 at the prevailing bank and/or commercial lending rate of interest from 12/12/12 continuing and till date of final payment. v. Costs. The Plaintiff in its Statement of Claim stated that the Defendant had advanced an amount not exceeding GH¢30,000,000.00 to D...