NDK FINANCIAL SERVICES LTD. vs. LEMET CONSTRUCTION LTD & JOHNSON TEYE, JULIET MARLEY TEYE

The plaintiff, a financial services company, sued to recover monies due under two loan facilities granted to the 1st defendant company, Lemet Construction Ltd, and to enforce personal guarantees executed by the 2nd and 3rd defendants, who were directors of the company. The first facility was for GH¢6,800,000.00 granted on 9 September 2015 for six months at 4.25% per month compounded, principally to finance the purchase of a quarry at Nsawam. The second facility was for GH¢2,500,000.00 disbursed on 3 May 2016. The facilities were secured by directors’ guarantees, a mortgage over the quarry, a deed of sale over trucks, and related undertakings and share transfer documents. The defendants admitted obtaining the loans and defaulting, but contended that the business purpose failed, that some repayments made were not reflected in the plaintiff’s statements, and that the 2nd and 3rd defendants, as guarantors, were not primary obligors. Portion of judgment: opening factual narrative beginning “The Plaintiff, a company duly registered…” through the description of Exhibits “B” to “M”; defence position beginning “In defending the suit…”

The Plaintiff, a company duly registered under the laws of the Republic of Ghana to engage in the business of providing loans and general financial and investment services, per a Writ of Summons issued against the Defendants herein on July 3, 2017, claims the following reliefs: “A) Recovery of the sum of Seventeen Million Fifty-Two Thousand, One Hundred and Twenty-Six Cedis Twenty-nine Pesewas (GH¢17,052,126,126.29) being the outstanding indebtedness of the Defendants to the Plaintiff as at January 31, 2017. B) Recovery of interest on the said sum at the contractual rate of 4.25 and a flat 2.5% charge on the outstanding facility. C) Recovery of the sum of Seven Hundred and Twenty-Four Thousand, Seven Hundred and Fifteen Cedis, Thirty-Seven Pesewas (GH¢724,715.37) being the contracted default charge of 2.5% of balance due and owing. D) Costs including legal fees on a full indemnity basis. E) Such further order(s) as the Court may deem fit.” I would note that the 1st Defendan...