TOP KINGS ENTERPRISE LTD. & 2 OTHERS vs. AMALAMATED BANK LTD. [2015]DLCA4543

Date	2015-11-12
Suit No.	CIVIL APPEAL N0: H1/36/2014
Citation No.	[2015]DLCA4543

MARIAMA OWUSU J.A. (PRESIDING)

VICTOR OFOE J.A.

A. M DORDZIE JA

MARGARET OWUSU FOR PLAINTIFF/RESPONDENT

KWASI GYIMAH FOR DEFENDANT/APPELLANT

[2015]DLCA4543
																																						<div class="restriction-wrapper">
														<div class="container-lg">
															<div class="row">
																<div class="col-md-12 restricted-content">
																	<div class="restricted-content-img-wrapper">
																		<div class="lock-icon bounce-7">
																			<img class=""
																				src="https://www.dennislawgh.com/dl-assets/dl-images/lock-content.png"
																				alt="Subscription based content">
																		</div>
																	</div>
																	 
																		<a href="https://www.dennislawgh.com/login"
																		class="btn btn-primary btn-lg"
																		style="font-family: 'open sans'; text-transform: capitalize; border-radius: 8px"> 
																		Login to Read Full Case </a>
																	 
																	
																</div>
															</div>
														</div>
													</div>
													<main id="main" class="content" style="min-height: 60rem" >TOP KINGS ENTERPRISE
LTD. &amp; 2 OTHERS<o:p></o:p>(DEFENDANT
/ APPELLANTS)<o:p></o:p>vs.<o:p></o:p>AMALAMATED BANK LTD.<o:p></o:p>(PLAINTIFF
/ RESPONDENT)<o:p></o:p>[COURT
OF APPEAL (CIVIL DIVISION), 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">

CIVIL
APPEAL N0: H1/36/2014&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: 12TH NOVEMBER,
2015<o:p></o:p>

KWASI
GYIMAH FOR DEFENDANT/APPELLANT<o:p></o:p>

</div>A.M.A.
DORDZIE, J. A.<o:p></o:p>The respondent in this
appeal, Amalgamated Bank Ltd, granted the appellants a loan facility totaling
GHc411, 500.00. The appellants defaulted in paying the loan facility.<o:p></o:p>In an effort to recover
the loan the bank instituted an action in the Commercial Division of the High Court
claiming:<o:p></o:p>a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery of a total sum of
GHc543,979.01 being accrued principal and interest due on the facility granted
the appellants<o:p></o:p>b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on the said amount -
Ghc543,979.01<o:p></o:p>c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realization of security <o:p></o:p>d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost<o:p></o:p>The defendants challenged
these claims and maintained that the plaintiff&nbsp;&nbsp;
conducted itself in such a way that changed the terms of the loan
facility and frustrated the 1st defendant’s ability to repay the loan. The
defendants therefore counter claimed for general damages for breach of the
agreement between the parties.<o:p></o:p>The parties agreed to
amicably settle their differences and filed terms of settlement on the 18th of
May 2012. The terms of settlement are as follows:<o:p></o:p>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; “The
debt has been restructured to two (2) facilities as follows:<o:p></o:p>Facility 1:<o:p></o:p>i.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conversion
of Overdraft to loan of an amount of six hundred and twenty-one thousand, nine
hundred and ninety-three Ghana cedis and ninety pesewas (Ghc621,993.90) which
continue to accrue interest on daily basis.<o:p></o:p>Facility 2:<o:p></o:p>ii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional
loan in the amount of two hundred and fifty thousand United States Dollars
(USD250, 000).<o:p></o:p>iii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
defendants shall have a five (5) month moratorium period commencing October
2011 and shall pay both facilities over six (6) months commencing 31st March
2012.<o:p></o:p>iv.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
repayment will be a single bullet payment at the end of the six (6) months
being September 2012.<o:p></o:p>v.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
interest on facility (1) above will be charged at base rate (currently 23.95)
plus 4.5 per annum collectible (subject to variations in line with market
trends).<o:p></o:p>vi.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest
on facility (2) above will be charged at 14% per annum collectible (subject to
variations in line with market trends)<o:p></o:p>vii.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; That
both facilities shall be secured with a mortgage property situate at Adabraka
with a forced sale value of one million and hundred thousand United States
Dollars (USD1, 100,000.00)<o:p></o:p>2.&nbsp;
That in the event of default of payment at the end of the period agreed
upon, plaintiff will be entitled to go into execution without leave of this
Court<o:p></o:p>3. That these terms of settlement
shall be entered as consent judgment by the Honourable Court.”<o:p></o:p>On the 31st of May 2012
the High Court entered the above stated terms as consent judgment for the
parties.<o:p></o:p>