[2022]DLCA16056 • June 1, 2022 • Court of Appeal
H.F.C. BANK GHANA LTD. vs P-MAG INVESTMENT & MONEY LENDING SERVICES LTD. & 3 ORS.
The Plaintiff, H.F.C. Bank Ghana Ltd., granted an overdraft facility and a revolving line of credit totaling GHS 3,000,000.00 to the 1st Defendant, P-Mag Investment & Money Lending Services Ltd. The 2nd, 3rd, and 4th Defendants mortgaged properties as security. Upon default by the 1st Defendant, the Plaintiff sued all Defendants jointly and severally for repayment or alternatively for judicial sale of the mortgaged properties.
read moreJUDGEMENT MENSAH-HOMIAH, JA The High Court, Koforidua in a very terse ruling dated 19th October 2020, stayed proceedings in the instant action against all four defendants, pursuant to the Banks & Specialised Deposit Taking Institutions Act 2016 (Act 930). We have been called upon to determine among other things, whether or not 1st Defendant Company falls within the entities regulated under Act 930, and whether the ruling is justified in law. In this appeal against the High Court ruling, Plaintiff/Appellant and Defendants/ Respondents would be simply referred to as Plaintiff and Defendants, respectively. A brief background to the case would be useful. On 24th September 2014, Plaintiff company granted an overdraft facility of One Million Ghana Cedis (GHS 1,000,000.00) and a revolving Line of Credit of Two Million Ghana Cedis (GHS 2,000,000.00) to 1st Defendant company on agreed terms. It is said that, 2nd, 3rd and 4th defendants mortgaged their properties as security for repayment ...