GROFINAFRICA FUND (GH) LTD vs. COLL BIY ENTERPRISES LTD AND 2 OTHERS

The applicant, GrofinAfrica Fund (GH) Ltd, granted a loan facility of GH¢215,000.00 to the 1st respondent, Coll Biy Enterprises Ltd, at an interest rate of 24.25% per annum to augment its capital. The 2nd respondent, managing director of the 1st respondent, personally guaranteed the loan. The 2nd and 3rd respondents, directors and shareholders, provided a legal mortgage over property at Gbawe North, Accra, registered with the Bank of Ghana collateral registry. The loan was to be repaid in monthly installments of GH¢6,292.00. The respondents defaulted as of 31 May 2016, with an outstanding balance of GH¢381,982.00 plus interest. The respondents admitted requesting the loan but contended the applicant paid the second tranche into a wrong account, denying liability for the sum claimed.

In this application, the applicant prays this court for an order for warrant to realize and or take possession of the property situate at Gbawe North, Accra in the Greater Accra Region known as plot no. 67 (Sector F). The respondents resist the application. The case of the applicant is that the 1st respondent applied for a loan facility in the sum of GH¢215,000.00 on the 14th of May, 2012 at an agreed interest rate of 24.25% per annum. The purpose of the facility was for the 1st respondent to augment its capital. The 2nd respondent is the managing director or the Chief Executive of the 1st respondent. It is the case of the applicant that the 2nd respondent personally guaranteed the loan for and on behalf of the 1st respondent. Furthermore, the applicant contends that the 2nd and 3rd respondents who are both directors and shareholders of the 1st respondent company, provided 3rd party legal mortgage over the property which has been described earlier on in this ruling. The applicant ....