H. F. C. GHANA LIMITED vs. EUNICHAP COMPANY LIMITED [2012]DLHC3869

Date	2012-10-31
Suit No.	CIVIL APPEAL NO.BFS/176/10
Citation No.	[2012]DLHC3869

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

MR ODURO KONADU FOR THE PLAINTIFF.

[2012]DLHC3869
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													<main id="main" class="content" style="min-height: 60rem" >H. F. C. GHANA LIMITED<o:p></o:p>vs.<o:p></o:p>EUNICHAP COMPANY LIMITED<o:p></o:p>&nbsp;[HIGH COURT,
KUMASI]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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CIVIL
APPEAL NO.BFS/176/10&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 OCTOBER, 2012<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1.5pt solid windowtext; padding: 0in; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">

<p class="MsoNormal" style="margin-left: 0.25in; text-indent: -0.25in; line-height: 115%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; border: none; padding: 0in;">MR
ODURO KONADU FOR THE PLAINTIFF.<o:p></o:p>

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>The Plaintiff Bank brought the
instant action against the Defendants herein jointly and severally for the
outstanding debt on a loan agreement which was executed by the 2nd
Defendant on behalf of the 1st Defendant. &nbsp;The endorsement on the writ of summons filed
on 13/08/2010 gave an amount of GH¢14, 870.72 as the outstanding debt. The
Plaintiff also claimed interest on this debt at the prevailing bank rate as
well as penal interest of 10% per annum from 1/04/2010 till date of final
payment. Alternatively, the Plaintiff prayed for an order for judicial sale of
property situate on plot number 1, block X, Atonsu, Kumasi which the 2nd
Defendant mortgaged as security for the said facility.<o:p></o:p>The Plaintiff Bank described the 1st
Defendant as a Limited Liability Company engaged in commerce and the 2nd
Defendant as its Director as well as a guarantor under the loan agreement. The Plaintiff’s
case can be gleaned from paragraphs 4 to 9 of its statement of claim as set out
below:<o:p></o:p>4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sometime
in or around August 2008, the 1st Defendant requested a loan
facility of GH¢10, 000.00 from the Plaintiff to supplement its business
operation funds to enable it execute a contract awarded it.<o:p></o:p>5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
By
a letter dated 28th August 2008, the Plaintiff approved the loan
facility in the sum of GH¢ 10,000.00 in favour of the 1st Defendant
at an interest rate of 29.75% per annum calculated and payable at the close of
every month until the date of final payment, subject to amendment at any time
and at the option of the Plaintiff in line with market conditions.<o:p></o:p>6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Plaintiff
further says that by the terms of the agreement any sum not paid when due shall
attract a penal interest of 10% per annum above the prevailing interest rate
which is subject to amendment at any time and at the option of the Plaintiff.<o:p></o:p>7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The
Defendant duly accepted the terms of the loan facility and on the strength of
which a loan agreement was prepared and signed by both parties. <o:p></o:p>8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The
2nd Defendant mortgaged property situate at plot 1 Bock X, Atonsu, and
Kumasi as security for the loan facility granted to the 1st
Defendant.<o:p></o:p>9)