H F C BANK GHANA LIMITED vs. AMPRATWUM HOSTEL FACILITY LIMITED & ANOR. [2012]DLHC3868

Date	2012-07-23
Suit No.	SUIT NO.BFS/55/12
Citation No.	[2012]DLHC3868

ANGELINA MENSAH-HOMIAH (MRS.) JUSTICE OF THE HIGH COURT

MR. SULLEY SAMBIAN FOR THE PLAINTIFF.

[2012]DLHC3868
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													<main id="main" class="content" style="min-height: 60rem" >H F C BANK GHANA LIMITED<o:p></o:p>vs.<o:p></o:p>AMPRATWUM HOSTEL FACILITY LIMITED &amp; ANOR.<o:p></o:p>&nbsp;[HIGH COURT (COMMERCIAL
DIVISION), KUMASI]<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">

SUIT NO.BFS/55/12&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: 23RD JULY, 2012<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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MR. SULLEY SAMBIAN FOR THE
PLAINTIFF.<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">

ANGELINA
MENSAH-HOMIAH (MRS.) JUSTICE
OF THE HIGH COURT<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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</div>This suit arose from a credit
transaction between the Plaintiff Bank and the Defendants herein who operate a
hostel facility in Mampong, Ashanti. Specifically, the 2nd Defendant
is a Director and sole shareholder of the 1st Defendant Company and
a personal guarantor under the loan agreement. <o:p></o:p>&nbsp;The endorsement on the writ of summons is as
follows:<o:p></o:p>a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Recovery
of the sum of Thirty-Six Thousand Five hundred and Fifty Ghana Cedis Seventeen
Pesewas (GH¢36, 550.17) being outstanding balance of a loan facility granted to
the 1st Defendant by the Plaintiff.<o:p></o:p>b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest
at the prevailing bank rate from 1st November, 2011 till date of
final payment.<o:p></o:p>c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Penal
interest of 10% per annum from 1st November, 2011 till date of final
payment.<o:p></o:p>The plaintiff’s case was that the 1st
Defendant applied for a loan facility of GH¢ 30,000.00 for a twelve month
period to enable it complete the ground floor of its Hostel facility. The said
facility was approved on 10/07/2006 upon terms. First, it attracted interest at
the rate of 28% per annum subject to amendment. Second, any sum not paid when
due attracted a penal interest of 10%. In order to secure the repayment of the
facility property described as site for Industrial Area, Mampong in the Sekyere
West District, Ashanti Region was used as security for the facility by the 2nd
Defendant.&nbsp; The Plaintiff’s case was that
the Defendants have defaulted in the repayment of the loan and the outstanding
amount on this credit facility as of 1/11/2011 was GH¢36,550.17. <o:p></o:p><o:p>&nbsp;</o:p>The Defendants’ admitted the
approval and subsequent granting of a loan of GH¢ 30,000.00 for a twelve month
period at an interest rate of 28% per annum but denied any knowledge of the
penal interest, which, according to 2nd defendant is unenforceable
at common law. The 2nd Defendant further admitted using his property
as security for the facility which expired on 5/09/2007. Both Defendants denied
owing the amount of money claimed by the Plaintiff together with the interests
thereon and pleaded the facts as stated below in explanation to their defence:<o:p></o:p>a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; that since the expiry of the
agreement in September, 2007 it has not been renewed at the instance of the Defendants
to cover the loan agreement for the subsequent years.<o:p></o:p>b)&nbsp;&nbsp;&nbsp;&nbsp; That the Plaintiff bank has
unilaterally debited various sums of money to the accounts of the defendants
and charged interest on such debits without informing the defendant company.<o:p></o:p>