MERCHANT BANK (GHANA) LIMITED vs. I.G. INDUSTRIAL CONSTRUCTION LTD [2006]DLCA6509

Date	2006-03-31
Suit No.	SUIT NO. HI/209/05
Citation No.	[2006]DLCA6509

LARTEY J.A. (PRESIDING)

KANYOKE J.A

MARFUL - SAU J.

BARIMA MANU—FOR APPELLANT

GEORGE AGBEKO—FOR ANDREW DANIELS FOR RESPONDENT

[2006]DLCA6509
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													<main id="main" class="content" style="min-height: 60rem" >MERCHANT
BANK (GHANA) LIMITED<o:p></o:p>(PLAINTIFF/RESPONDENT)<o:p></o:p>vs.<o:p></o:p>I.G.
INDUSTRIAL CONSTRUCTION LTD<o:p></o:p>(DEFENDANT/APPELLANT)<o:p></o:p>[COURT OF APPEAL, ACCRA]<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="center" style="margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">SUIT
NO. HI/209/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;DATE: 31ST MARCH, 2006<o:p></o:p>

<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:
justify;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">BARIMA MANU—FOR APPELLANT.
<o:p></o:p>

<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:
justify;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">GEORGE AGBEKO—FOR ANDREW
DANIELS FOR RESPONDENT.<o:p></o:p>

<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
115%;mso-outline-level:1;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">LARTEY J.A. (PRESIDING), KANYOKE
J.A, MARFUL - SAU J.<o:p></o:p>

</div><o:p>&nbsp;</o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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<p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt;
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solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">JUDGMENT<o:p></o:p>

</div>ANIN-YEBOAH
J.A.<o:p></o:p>This
is an appeal against the Judgment of the High Court, Accra (Fast Track
Division) Presided over by His Lordship Justice Yaw Appau dated the 28th of
October, 2003. <o:p></o:p>The
Plaintiff/Respondent (hereinafter referred to simply as the Respondent) is a
banking institution which granted short term loan to the Defendant/Appellant
(hereinafter referred to as the Appellant) on certain terms. It appears from
the statement of claim which accompanied the Writ of summons that the facility
was to provide working capital to the Appellant to enable it complete the
Atlantic Shopping Mall Project at Accra. The facility so granted was as usual,
to attract interest, bank charges and a penal rate of interest in case of
default in repayment on the part of the Appellant. It is not clear in the
Statement of Claim the actual amount which was granted. It is, however,
apparent on the writ and the statement of claim that as at 7-1-2002 the Appellant's
indebtedness stood at ¢4,633,613,064.70. <o:p></o:p>The
Appellant in their statement of defence vertually admitted all the paragraphs
in the Statement of claim. Indeed paragraph 1 of the statement of defence
admitted paragraph 1, - 6 inclusive of the statement of claim. Paragraph 7
admitted paragraphs 9,10,11,12,13 and 14 of the statement of claim. It appears
that on 1-4-2003 counsel for the Defendant filed summons for leave to issue
Third Party Notice under Order 16 of LI 1129. The affidavit in support of the summons
did not state the name of the Third Party and his address. This is clearly
contrary to Order 16 rule 2(3)(d) of LI 1129. However, on 8-4-2003 the court
granted the application for the Third Party notice to issue and ordered that
the suit should take its normal course. On the 16-4-2003 Third Party Notice was
issued to Golden Beach Hotels (Ghana) Limited. <o:p></o:p>The
Defendant formulated the following questions to be tried in the Third Party
Notices: <o:p></o:p>1.
"That Third Party herein at its Board meeting of 28-3-2001 acknowledged
its indebtedness of an amount of US $401,393.00 to the defendant and understook
sic to pay the said amount directly to the Plaintiff herein. <o:p></o:p>2.
That the Plaintiff herein was represented at the said Board Meeting by its
Managing Director and was part of the agreement to have the aforesaid sum paid
directly to the Plaintiff. <o:p></o:p>The
record of proceedings in this appeal indicates that a search conducted at the
Registry by the Plaintiff, subsequent to the issue of the Third Party Notices,
shows that the Third Party Notice had been served on the Third party but there
was no indication as to the date of service. <o:p></o:p>However,
on 15-5-2003 the Third Party entered appearance as required by Order 16 Rule 4
(3) of LI 1129. The record does not show that the Appellant who was the
defendant in the court below did apply to the court below for directions as
required under Order 16 Rule <o:p></o:p>5(1)
which states as follows: 5(1) "If the third party enters an appearance,
the defendant who issued the third party notice must, by summons to be served
on all other parties to the action, apply to the court for directions" <o:p></o:p>It
is also clear from the record that the Third Party did not also apply to the
court below for directions or for an order to set aside the third party notice issued
by the court. On 2-6-2003, learned counsel for the Respondent filed a motion
for judgment on admissions under Order 32 Rule 6 of the High Court Rules. Upon
service of the motion, the Appellant filed an affidavit in opposition on
9-9-2003 to resist the grant of the motion. It appears the main ground for
opposing the application was that the third party and the Respondents' Manag</main>