OYOKO CONTRACTORS LTD vs. STARCOM BROADCASTING SERVICES [2003]DLCA1009

Date	2003-12-04
Suit No.
Citation No.	[2003]DLCA1009

OMARI-SASU JA

TWENEBOA-KODUA JA

QUAYE JA

AFRIFA FOR THE APPELLANT.

MAXWELL LOGAN FOR THE RESPONDENT.

[2003]DLCA1009
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													<main id="main" class="content" style="min-height: 60rem" ><a name="_gjdgxs"></a><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">OYOKO CONTRACTORS LTD<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">STARCOM BROADCASTING SERVICES<o:p></o:p>[COURT
OF APPEAL, ACCRA]<o:p></o:p>[2003-2005]
1 GLR 445<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">

<p class="MsoNormal" align="right" style="margin-bottom:5.0pt;text-align:right;
mso-pagination:none;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">Date: 4 December 2003<o:p></o:p>

</div>COUNSEL:<o:p></o:p>AFRIFA
FOR THE APPELLANT.<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">

MAXWELL
LOGAN FOR THE RESPONDENT. <o:p></o:p>

OMARI-SASU,
TWENEBOA-KODUA AND QUAYE JJA<o:p></o:p>

</div>JUDGEMENT<o:p></o:p>Quaye JA
delivered the first judgment at the invitation of Omari-Sasu JA. On 24 July
2002 the High Court, Accra delivered a ruling in an application for summary
judgment in favour of the first defendant-applicant (hereinafter referred to as
the respondent). It is against the said ruling of the trial High Court that the
plaintiff- appellant (hereinafter referred to as the appellant) against whom
the ruling was made has filed the instant appeal. In order to better appreciate
this appeal, I will proceed herewith to give a brief chronology of the case.<o:p></o:p>Evidence
before this court, which is principally documentary suggest that a company
going by the name of Messrs Allied Trade and Finance Ltd approached the
respondent for a loan during the month of September in the year 2000. At the
completion of the negotiations between the respective solicitors of the
respondent-company and the said Allied Trade and Finance Ltd—the borrowers, a
loan agreement involving the sum of US$350,000 encumbered with an agreed rate
of interest of 25 per cent was executed between the two said parties repayable
within a period of 100 days from 14 September 2000, the date of its execution.
On that very date the second defendant who was not recited as a party to the
loan negotiation and agreement, executed, purportedly upon the authorisation
and on behalf of the appellant, a deed of assignment of a property, H/No 64A,
Airport Residential Area, Accra in favour of the respondent as collateral
security for the loan agreement between the respondent and Allied Trade and
Finance Ltd. Subsequent to the execution of the loan agreement and the deed of
assignment of 14 September 2000, the second defendant proceeded and executed
another document, purportedly to confirm his capacity to commit the appellant,
as he did by tendering the deed of assignment. Thus, a letter of consent was
made and signed by the second defendant on 20 September 2000. In the said deed,
the second defendant claimed beneficial ownership of H/No 64A, Airport
Residential Area, Accra and gave his personal:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">“Unreserved
consent to the use of my above-named property as collateral security for a
credit of US$350,000 together with interest at a flat rate of 25 per cent being
extended to Messrs Allied Trade and Finance Ltd (Borrower) by Starcom Broadcasting
Services (Lenders).”<o:p></o:p>In
the same document, the second defendant added:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">&nbsp;“I also understand consent and give my
unreserved undertaking to assign the said property to the lenders as security
for the sum borrowed, understanding and consenting further that in the event of
a default the property may be sold by the lenders in satisfaction of the debt.”<o:p></o:p>The
said letter of consent was however not sworn. As it turned out the borrowers
failed to meet the conditions for the repayment of the loan. According to the
respondent, after several adjustments of the due date for the repayment by
extension of the time given, i</main>