UNIVERSAL MERCHANT BANK (PLAINTIFF) vs. DANADAMS PHARMACEUTICALS INDUSTRY LIMITED AND DR. YAW ADU GYAMFI (DEFENDANTS)

The instant application prays “for an order for the appointment of a receiver to take over and manage the affairs of the 1st defendant upon the grounds contained in the accompanying affidavit.” The application is brought under Order 27 rules 1 and 2 of the High Court (Civil Procedure) Rules, 2004, CI.47 and also under sections 87(1) (b) and 88 of the Companies Act 1963, Act 179. The respondents are opposed to the application as shown by their affidavit in opposition. The respondents have taken issue with the propriety of the application. It has been argued that if the applicant seeks to enforce a debenture by virtue of exhibit AAB3 by which the applicant says that as security for the repayment of a loan granted, a debenture was created over certain assets of the 1st defendant company, then the plaintiff should, first, have instituted a debenture action, as provided for under Order 61 of the High Court Rules, before it can apply for receivers to take charge of the assets of the com...