ROYAL BENEFICIARIES ASSOCIATION vs. ESTHER OKAILEY ASARE AND 3 OTHERS [2015]DLCA5139

Date	2015-12-03
Suit No.	SUIT NO: H1/191/2013
Citation No.	[2015]DLCA5139

OWUSU M. J.A. (PRESIDING)

GYAESAYOR J.A.

SOWAH J.A.

MR. SAMUEL QUANSAH ANSAH FOR 1ST 3RD & 4TH DEFENDANTS/RESPONDENTS

MR. FRANCIS KWAME YEBOAH FOR PLAINTIFF/APPELLANT

[2015]DLCA5139
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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>ESTHER OKAILEY ASARE AND 3 OTHERS<o:p></o:p>(DEFENDANTS/RESPONDENTS)<o:p></o:p>[COURT
OF APPEAL, ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:
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padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">SUIT NO: H1/191/2013&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; &nbsp; &nbsp; &nbsp; &nbsp;3RD DECEMBER, 2015<o:p></o:p>

</div>COUNSEL:<o:p></o:p>MR. SAMUEL QUANSAH ANSAH FOR 1ST,
3RD &amp; 4TH DEFENDANTS/RESPONDENTS<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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<p class="MsoNormalCxSpMiddle" style="margin-bottom:0in;margin-bottom:.0001pt;
mso-add-space:auto;text-align:justify;text-justify:inter-ideograph;border:none;
mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">MR. FRANCIS KWAME
YEBOAH FOR PLAINTIFF/APPELLANT<o:p></o:p>

</div>CORAM:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>OWUSU M. J.A. (PRESIDING), GYAESAYOR
J.A., SOWAH 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;
text-align:center;tab-stops:63.75pt center 3.25in;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">JUDGMENT<o:p></o:p>

</div>SOWAH,
J.A:<o:p></o:p><o:p>&nbsp;</o:p>The
plaintiff/appellant is a company limited by guarantee and purported to be a
Welfare Association whose functions included borrowing from the commercial
banks for the benefit of its members. It sued the defendants/respondents for
failing to repay financial assistance in accordance with agreed terms. The 1st
defendant admitted receiving money from the plaintiff but she and the other
defendants who had stood as guarantors filed a counterclaim resisting
plaintiff's claim and urging the trial court to find the loan transaction
illegal and unenforceable in terms of the Moneylenders Act 1941, Cap 176. They
further urged the court to find the interest and charges on the facility harsh,
excessive and unconscionable and to reopen the transaction under the Loans Recovery
Act Cap 175. [See pages 149-150 of Record]. Thus one of the issues for trial
was whether or not the transaction between the parties was illegal and
unenforceable under the provisions of Cap 176 and ought therefore to be set
aside as void, or it was a lawful transaction which the court ought to enforce.<o:p></o:p><o:p>&nbsp;</o:p>In
the judgment dated 2nd December 2008 to be found at pages 188-209 of
the Record, the trial court found on the facts and the evidence that the
plaintiff was engaged in the active business of money lending by definition of
section 1 of Cap 176 and held the transaction to be an illegal contract as it
was prohibited by law to conduct the business of money lending without a
license. On this premise the contract exhibit D was declared void and
unenforceable. The 1st defendant had prayed for the reopening of the loan
transaction in accordance with section 3(1) of Cap 175 but the trial judge
disagreed that this law was applicable to the circumstances of the case. She
therefore refused to reopen the transaction for the purpose of granting any
relief there under.<o:p></o:p><o:p>&nbsp;</o:p>The
trial court also held the transaction to be unenforceable on two other grounds:
It agreed with the 1st defendant’s complaint of fraudulent inducement through
misrepresentations. It also held that as the plaintiff had been set up as a
guarantee company, by section 10 of the Companies Act 1963, Act 179 it ought
not to have conducted business for the purpose of making profits. It therefore
dismissed the plaintiff's claim in totality. <o:p></o:p><o:p>&nbsp;</o:p>Dissatisfied with the judgment, the plaintiff/appellant
filed her Notice of Appeal on 9th Dec 2008, praying that the whole
judgment be overturned, the agreement between the parties be enforced, and the
reliefs sought in the lower court be restored and granted. The grounds of
appeal are as follows:<o:p></o:p>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
judgment is against the weight of the evidence adduced at the trial.<o:p></o:p>