BANK OF AFRICA LTD vs. GRACEFIELD MERCHANTS LTD, DR. KOFI RUBEN ATEKPE AND KOFI KWAKWA [MIKE TWUM BARIMAH AND ROBERT ALLEN-CLAIMANTS]

The appellant bank obtained a judgment against the defendants to recover a loan balance of GHC 7,526,234.29. The bank executed the judgment by attaching mortgaged property of the 2nd defendant, which was secured by a Deed of Mortgage executed in 2007 but used as security for a 2010 loan. The 2nd defendant assigned parts of the mortgaged property to the 1st and 2nd claimants in 2008 and 2009 respectively, before the mortgage was registered in 2010. The claimants filed claims leading to interpleader proceedings. The High Court found the claimants to be innocent purchasers without notice and discharged the properties from attachment. The Court of Appeal dismissed the bank's appeal, leading to this Supreme Court appeal.

JUDGMENT MARFUL- SAU, JSC: - This appeal relates to interpleader proceedings taken at the High Court, Accra. The brief facts of the case are that the Appellant herein took judgment against the defendants in the original suit to recover an amount of GHC 7, 526, 234.29, being the balance including interest on a loan advanced to the defendants. In executing the judgment the Appellant attached the property of the 2nd defendant which was used to secure the loan. A Deed of Mortgage was executed by the Appellant and the 2nd defendant on 4th May 2007. The record revealed that even though the Mortgage was executed in 2007, it was used as security for the loan taken by the defendants in the year 2010. Now, the 2nd defendant on the 11th November 2008 assigned his interest in a portion of the property the subject of the Mortgage to the 1st Claimant/ Respondent in this appeal. The 2nd defendant again on the 8th of July 2009 assigned another part of the mortgaged property to the 2nd Claimant/Resp...