[2017]DLSC2989 • June 21, 2017 • Supreme Court •
STANDARD BANK OFFSHORE TRUST COMPANY LIMITED vs. NATIONAL INVESTMENT BANK LIMITED, ELAND INTERNATIONAL GHANA LIMITED AND DANIEL CHARLES GYIMAH
The case arose from the alleged default by the 1st Defendant/Appellant (Standard Bank Offshore Trust Company Limited) to honor its guarantee obligations on promissory notes issued by the 2nd Defendant (Eland International Ghana Limited). The Plaintiff/Respondent claimed to represent certain investors in these promissory notes and sought recovery of $60 million under the guarantee, interest, and costs. The Appellant denied guaranteeing the notes, challenged the authority of its Managing Director to bind it, alleged fraud, and claimed negligence by the Respondent.
read moreBENIN, JSC:- This matter began as a result of what was said to be a default on the part of the 1st Defendant/Appellant/Appellant, called the Appellant, to honour its obligations by way of a guarantee of certain promissory notes issued by the 2nd Defendant herein. The Appellant, through its then Managing Director, the 3rd Defendant herein, was thought to have guaranteed payment of the promissory notes upon maturity. The holders of the promissory notes considered that in the normal course of business, upon maturity the Appellant would honour its obligations under the guarantee and pay up. But it did not do so for reasons that will be disclosed shortly. Consequently, by an amended writ of summons, the Plaintiff/Respondent/Respondent, called the Respondent, who claimed to be representing certain investors in the promissory notes, issued a writ of summons at the High Court and sought these reliefs against the Appellant: (i). Recovery of the sum of sixty million United States dollars ($60...