REPUBLIC vs. HIGH COURT, ACCRA; EX PARTE CHINTO [1993]DLSC858

Date	1993-05-26
Suit No.
Citation No.	[1993]DLSC858

FRANCOIS JSC

AMUA-SEKYI JSC

AIKINS JSC

BAMFORD-ADDO JSC

HAYFRON-BENJAMIN JSC

JAMES AHENKORAH FOR THE APPLICANT.

E VA ADJETEY FOR THE RESPONDENTS.

[1993]DLSC858
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">REPUBLIC<o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">vs.<o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">HIGH COURT, ACCRA; EX PARTE CHINTO<o:p></o:p>[SUPREME COURT ACCRA]<o:p></o:p>[1993-94] 1 GLR 159<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

</div>COUNSEL:<o:p></o:p>JAMES AHENKORAH FOR THE APPLICANT.<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

E VA ADJETEY FOR THE RESPONDENTS. <o:p></o:p>

</div>CORAM: <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

FRANCOIS, AMUA-SEKYI, AIKINS, BAMFORD-ADDO AND HAYFRON-BENJAMIN
JJSC<o:p></o:p>

</div>JUDGMENT OF AIKINS J.S.C.<o:p></o:p>This is an application by Diana Chochoo Chinto for an order of
certiorari to bring up and quash the proceedings in the suit instituted in the
High Court, Accra bearing the number OS 1955/91 and titled La Community Bank
Ltd v Kotex Ltd, High Court, 8 November 1991, unreported and the resultant
judgment therein ordering a judicial sale of all that piece or parcel of land
with a building or buildings thereon, the property of Diana Chochoo Chinto, the
applicant herein, situated at north La, Accra and mortgaged to secure the
indebtedness of Kotex Ltd to the La Community Bank Ltd.<o:p></o:p>Sometime in 1990 the applicant guaranteed the indebtedness of a
registered liability company, Kotex Ltd based in La, Accra, to the La Community
Bank Ltd, and by way of further security mortgaged her land with a house
thereon in which she lives to the said bank in an indenture of mortgage dated
20 June 1990 and registered at the Land Registry as instrument No 1796/1990.<o:p></o:p>When the company failed to repay the loan as agreed upon, the bank
instituted proceedings by way of originating summons at the High Court, Accra
against Kotex Ltd for the substantive relief of judicial sale of the
mortgagor’s house which she mortgaged to the bank to secure the debt of Kotex
Ltd. On 8 November 1991 the High Court gave judgment for the judicial sale of
the house. To enforce the order for judicial sale the bank caused a writ of fi
fa to be issued against the property, and as a result a notice of attachment and
a notice of sale were issued by the deputy sheriff.<o:p></o:p>Counsel for the applicant, Mr James Ahenkorah, has urged that the
originating summons leading to the order for judicial sale of the mortgaged
property was legally null and void since the mortgagor who is the owner of the
property and is the person who stands to be affected by the outcome of the
proceedings which were intended to destroy the equity of redemption in the
property was neither sued nor joined as a party to the suit before the High
Court, Accra.<o:p></o:p>I think the argument of counsel for the applicant is quite tenable
and well founded because an order for judicial sale cannot, in my view, be
properly made without ensuring that the mortgagor who has an interest in the
equity of redemption is a party to the suit. I must confess that I do not see
how the action leading to the order for judicial sale of the mortgaged property
can be said to have been properly instituted unless all persons interested in
the equity of redemption are brought before the court.<o:p></o:p>I am buttressed in this view by the contents of the notice of
attachment dated 3 August 1992 and the notice of intention to sell by public
auction of even date issued by the deputy sheriff of the High Court, Accra
(exhibits VKA 2 and 3 respectively) both of which were fixed on the mortgaged
property, which indicate the mortgaged property to belong to the judgment
debtor, Kotex Ltd. In truth and in fact Kotex Ltd does not own the mortgaged
property. It is therefore a misrepresentation of fact. The proper person to
have been sued was the mortgagor.<o:p></o:p>Under section 15 of the Mortgages Decree, 1972 (NRCD 96), where
there is a failure of performance of any act secured by the mortgage the
mortgagee is entitled to take any of the following two steps, namely,<o:p></o:p><p class="MsoNormalCxSpMiddle" style="margin-left:.75in;mso-add-space:auto;
text-align:justify;text-indent:-.25in;mso-pagination:none;mso-list:l0 level1 lfo1;
border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">(a)&nbsp;&nbsp;&nbsp; “sue the mortgagor or obligor
or both on any personal covenant to perform; <o:p></o:p><p class="MsoNormalCxSpMiddle" style="margin-top:0in;margin-right:0in;margin-bottom:
5.0pt;margin-left:.75in;mso-add-space:auto;text-align:justify;text-indent:-.25in;
mso-pagination:none;mso-list:l0 level1 lfo1;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;
mso-border-shadow:yes">(b)&nbsp;&nbsp;&nbsp;
<spa</main>