ROYAL BENEFICIARIES ASSOCIATION vs. MRS. VIVIAN MENSAH & 3 ORS. [2010]DLCA6940

Date	2010-05-13
Suit No.	CIVIL APPEAL NO.: H1/239.2008
Citation No.	[2010]DLCA6940

MRS. HENRIETTA ABBAN J.A. (PRESIDING)

MR. W. H. K. ADDO J.A.

MR. E. K. AYEBI J.A.

MR. FRANCIS KWAME YEBOAH FOR PLT’/APPLT’

MR. GEORGE ABORGAH FOR THE DEFTS’/RESPTS’

[2010]DLCA6940
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													<main id="main" class="content" style="min-height: 60rem" >ROYAL BENEFICIARIES ASSOCIATION<o:p></o:p>(PLAINTIFF/APPELLANT)<o:p></o:p>vs.<o:p></o:p>MRS. VIVIAN MENSAH &amp; 3 ORS.<o:p></o:p>(DEFENDANTS/RESPONDENTS)<o:p></o:p>[COURT
OF APPEAL, ACCRA]<o:p></o:p>CIVIL
APPEAL NO.: H1/239.2008&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: 13TH MAY, 2010<o:p></o:p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt;
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;border:none;
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;border:none;
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FOR PLT’/APPLT’ <o:p></o:p>

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DEFTS’/RESPTS’<o:p></o:p>

</div>CORAM:<o:p></o:p>MRS.
HENRIETTA ABBAN J.A. (PRESIDING), MR. W. H. K. ADDO J.A., MR. E. K. AYEBI J.A.<o:p></o:p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt;
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<p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt;
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</div>AYEBI J.A.:<o:p></o:p>&nbsp;This is an appeal from the judgment of the
Commercial Court, Accra delivered on 26th November 2007.<o:p></o:p>&nbsp;At the trial court, the plaintiff who is the
appellant herein, claimed the following reliefs: <o:p></o:p>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Repayment of an amount of 210 million cedis
representing 14 weeks of 15 million cedis still unpaid. <o:p></o:p>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Interest on the above amount at the current
bank interest rate, from 21st August 2006 to the date of final payment.<o:p></o:p>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Any other reliefs that may seem fit to the
court.<o:p></o:p>&nbsp;On their part, Defendants who are the
respondents in this appeal, counter-claimed for:<o:p></o:p>&nbsp;(a) A declaration that the loan transaction is
illegal and unenforceable in terms of the Moneylenders Ordinance, Cap 176. <o:p></o:p>(b)
An order setting aside the loan transaction for being illegal and
unenforceable. <o:p></o:p>(c)
An order re-opening the said loan transaction on the ground that the interest
and other charges levied by the plaintiff on the said loan transaction is
excessive, harsh and unconscionable in terms of the Loans Recovery Ordinance,
Cap 175.<o:p></o:p>&nbsp;(d) Any other reliefs the court deem meet. <o:p></o:p>From
the pleadings and evidence on record, the material facts are not in dispute and
should be not as charged by the appellant in its reply to the respondents’
answer. The appellant is a welfare association of market women and traders
incorporated as a company limited by guarantee. One of its objects is to source
bulk loans from commercial banks for the benefit of its members.<o:p></o:p>&nbsp;In December 2005, appellant per its president
Joana Ewurabena Ocran, was granted a loan of three billion cedis to enhance its
working capital. To benefit from the loan, a member must satisfy certain
conditions. The 1st respondent, a member of appellant association applied for
financial assistance of five hundred million cedis. Having satisfied the
conditions, she was given the five hundred million she requested for upon the
condition that the whole amount is repaid in 52 weeks at fifteen (15) million
cedis per week.<o:p></o:p>&nbsp;The 2nd to 4th respondents stood as guarantors
for 1st defendant and in default they are jointly liable. The 1st respondent
paid for 38 weeks and thereafter defaulted in the repayment of the remaining 14
weeks amounting to 210 million cedis, hence the reliefs the appellant claimed
against them. <o:p></o:p>