[2007]DLCA6468 Login to Read Full Case <span style="font-size: 18px !important;"><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">GHANA COMMERCIAL BANK<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><i><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(PLAINTIFF/RESPONDENT)<o:p></o:p></span></i></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">vs.<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">DAKMAK RASHWAN CHEMICAL INDUSTRY & 6 ORS.<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><i><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(DEFENDANTS/APPELLANTS)<o:p></o:p></span></i></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"">[COURT OF APPEAL, ACCRA]<o:p></o:p></span></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"">CIVIL APPEAL NO.: H1/155/2007 DATE: 26TH OCTOBER, 2007<o:p></o:p></span></p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt; border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none; padding:1.0pt 0in 1.0pt 0in"> <p class="MsoNormal" style="text-align:justify;line-height:115%;border:none; mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt:solid windowtext 1.5pt; padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">COUNSEL:</span></b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> <o:p></o:p></span></p> <p class="MsoNormal" style="text-align:justify;line-height:115%;border:none; mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt:solid windowtext 1.5pt; padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif"">MR. BENJAMIN OSEI TUTU FOR YONNI KULENDI FOR DEFENDANT/APPELLANT.<o:p></o:p></span></p> <p class="MsoNormal" style="text-align:justify;line-height:115%;border:none; mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt:solid windowtext 1.5pt; padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif""> MR. G.A. SARPONG FOR THE PLAINTIFF/RESPONDENT.<b><o:p></o:p></b></span></p> <p class="MsoNormal" style="text-align:justify;line-height:115%;border:none; mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt:solid windowtext 1.5pt; padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""><o:p> </o:p></span></b></p> </div><p class="MsoNormal" style="text-align:justify;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">CORAM:</span></b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">QUAYE JA [PRESIDING], MARIAMA OWUSU JA, DUOSE JA<o:p></o:p></span></p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt; border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none; padding:1.0pt 0in 1.0pt 0in"> <p class="MsoNormal" align="center" style="text-align:center;line-height:115%; border:none;mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt: solid windowtext 1.5pt;padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">JUDGMENT<o:p></o:p></span></b></p> </div><p class="MsoNormal" style="text-align:justify;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">QUAYE, JA:<o:p></o:p></span></b></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> In the cause that is still pending final determination in the trial High Court (Fast Track) the plaintiff/respondents, who are a corporate body, established under the laws of Ghana to engage in the banking business, commenced the action by writ of summons on 5th April 2005, for the recovery of ¢18,033.477,450.14 which they alleged was the outstanding unpaid amount including interest on a 120 days deferred letter of credit facility of US$1,000,000.00 they granted the 1st Defendant/appellant on 27th February 1998. The facility was valid for 24 months, with a condition for review at six months intervals. The said facility was secured by the 1st Defendant/appellant with a landed property better described as Plot No. 56 Ring Road North Industrial Area, Accra belonging to the 2nd defendant/appellant. In addition the 3rd, 4th, 5th, 6th and 7th defendants/appellants executed a joint guarantee for the facility. On the due date the 1st Defendant/appellant failed to liquidate their indebtedness. After the respondents had formally made a demand for the payment, and upon failure by the appellants to pay, the respondents filed the said action.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> The 1st defendant/appellant is a body corporate. The defendants/appellants jointly entered appearance per their Solicitor on 15th April 2005 and filed a defence on 29th August 2005. In their statement of defence, the appellants admitted paragraphs 1 – 6 of the plaintiff/respondent’s statement of claim. Those paragraphs inter alia recited the grant of facility aforesaid, the conditions attached thereto and the security and guarantees executed by the defendants/appellants in that behalf. <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">The second leg of the statement of defence was an example of what is known in law as confession and avoidance. <b><u>SIEVERS VRS. BROWN</u> 216 Miss 801, 63502d 217, 219</b> explained a plea in confession and avoidance as one which avows and confesses the truth of the averments of fact in the complaint or declaration, either expressly or by implication, but then proceeds to allege new matter which tends to deprive the facts admitted of their ordinary legal effect; or to obviate, neutralize, or avoid them. Indeed after the defendants/appellants had unequivocally admitted the facility as stated in paragraphs 3, 4, 5 and 6 of the respondents statement of claim, they devoted paragraphs 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 of the statement of defence to denial of the debt alleging that the parties, that is to say, both the plaintiffs/respondents, and the defendants/appellants at a point in time, negotiated the outstanding balance of the debt, pursuant to which negotiations, the plaintiff/respondents agreed, to, and indeed, classified the debt as a loss, a bad debt, in exchange for the payment of a lesser agreed sum by the defendants/appellants. In the result of the compromise which was concluded between 1999 and 2000 and the accord and satisfaction received by the plaintiffs/respondents, the latter did not make any demand for the debt after the year 2000. In effect therefore, and visualizing with the eyes of the defendants/appellants, there is, no question whatsoever, of any debt between them and the plaintiff/respondents. Furthermore, the defendants/appellants claimed that, to underscore the accord and satisfaction, that is, the settlement negotiation between the parties, the plaintiffs/respondents did, in fact, release or return all the relevant documents and guarantees that the defendants/appellants had earlier on executed or handed over to the plaintiffs/respondents to secure the loan back to the defendants/appellants.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> The averments contained in the statement of defence prompted the filing by the plaintiffs/respondents on 5th September 2005 of a motion for interrogatories under Order 22 rule 1 of CI 47, the High Court Civil Procedure Rules (2004).<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> The questions put in the interrogatories were:<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> 1. What are/is the name(s) of Plaintiff’s officials with whom the Defendants negotiated the outstanding balance due and payable by the Defendants?<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> 2. When did Defendants negotiate the payment of the outstanding balance with Plaintiff?<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> 3. What is the name of Plaintiff’s official who agreed to classify the debt as a loss in exchange for payment of a lesser sum by the Defendants? <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">4. When did Plaintiff agree to classify the debt as a loss in exchange for payment of a lesser sum by the Defendants? <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">5a. Has (sic) the Defendants made any payment to the Plaintiff? <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">5b. If