AHENFIE CLOTH SELLERS ASSOCIATION PER THE PRESIDENT JOANA EWURABENA OCEAN vs. ALICE MOMO BADU, RICHARD NAAWU, GODWILL A. IMPRAIM AND JUSTICE BADU [2016]DLCA8451

AHENFIE CLOTH SELLERS ASSOCIATION PER THE PRESIDENT JOANA EWURABENA OCEAN vs. A... [2016]DLCA8451

Date	2016-07-21
Suit No.	SUIT NO. HI/73/2012
Citation No.	[2016]DLCA8451

OFOE J.A. (PRESIDING)

KORBIEH J.A.

KWOFIE J.A.

GEORGE ABORGAH FOR THE DEFENDANTS/APPELLANTS

F. K. YEBOAH FOR THE PLAINTIFF/RESPONDENT

[2016]DLCA8451
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													<main id="main" class="content" style="min-height: 60rem" >AHENFIE CLOTH SELLERS ASSOCIATION PER THE PRESIDENT JOANA
EWURABENA OCEAN<o:p></o:p>(PLTF/ RESPONDENT)<o:p></o:p><span lang="EN-US" style="font-size:12.0pt;
line-height:115%;font-family:&quot;Book Antiqua&quot;,serif;mso-fareast-font-family:&quot;Book Antiqua&quot;;
mso-bidi-font-family:&quot;Book Antiqua&quot;;color:#00B0F0">vs.<o:p></o:p>ALICE MOMO BADU, RICHARD NAAWU, GODWILL A. IMPRAIM AND JUSTICE
BADU<o:p></o:p>(DEFTS/ APPELLANTS)<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;
padding:0cm 0cm 1.0pt 0cm">

SUIT
NO. HI/73/2012&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; &nbsp; &nbsp; &nbsp; DATE: 21ST JULY, 2016<o:p></o:p>

</div>COUNSEL:<o:p></o:p>GEORGE
ABORGAH FOR THE DEFENDANTS/APPELLANTS<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0cm 0cm 1.0pt 0cm">

F.
K. YEBOAH FOR THE PLAINTIFF/RESPONDENT<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:0cm 0cm 1.0pt 0cm">

OFOE
J.A. (PRESIDING), KORBIEH J.A., KWOFIE J.A.<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;
padding:0cm 0cm 1.0pt 0cm">

<p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt;
text-align:center;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">JUDGMENT<o:p></o:p>

</div>KWOFIE
J.A:<o:p></o:p>The Plaintiff/Respondent which is a Company Limited
by guarantee was formed with the object or aim of applying for loans from
commercial banks for the benefit of its members.&nbsp; The 1st defendant was a member of
the association who received a loan of One Hundred thousand Ghana Cedis
(GH¢100,000.00) in July 2006 from the plaintiff in accordance with agreed terms
which loan was guaranteed by the 2nd, 3rd and 4th
defendants.&nbsp; The 1st defendant
was to have repaid the loan of GH¢100,000.00 at the rate of Three Thousand
Ghana Cedis (GH¢3,000.00) per week but within 52 weeks.&nbsp; The 1st defendant however paid the
weekly GH¢3,000.00 for 15 weeks and defaulted and failed to pay any more money
to the plaintiff leaving an outstanding balance of 37 weeks instalment payment amounting
to GH¢110,000.00.&nbsp; The plaintiff Association
therefore instituted action at the High Court (Commercial Division) for the
recovery of the said amount of GH¢110,000.00) together with interest at the
current bank rate from 6th December, 2006 to the date of final
payment.<o:p></o:p>The defendants admitted that the 1st
defendant received the loan of GH¢100,000.00 but resisted the plaintiff’s claim
and contended that the loan transaction was illegal and unenforceable in terms
of the Moneylenders Ordinance Cap 176 and that the interest, terms, and other
charges on the loan transaction were harsh, excessive and unconscionable.&nbsp; The defendants further urged the trial court
to re-open the loan transaction under the Loans Recovery Act (Cap 175).&nbsp; They therefore counterclaimed for a
declaration that the loan transaction was illegal and unenforceable in terms of
the Moneylenders Act, 1941 Cap 176 and for an order re-opening the transaction
on the grounds that the interest and other charges were harsh, excessive and unconscionable
in terms of the Loans Recovery Ordinance.&nbsp;
They further prayed for an order directed at the plaintiff to deliver to
the 1st defendant the original document covering her (1st
defendant) house No. B2 Adogor Nungua, Accra.&nbsp;
The trial High Court Judge in her judgment held that the plaintiff
Association was a Moneylender and that the whole transaction between the
plaintiff and the 1st defendant was harsh and unconscionable and
unenforceable and accordingly set it aside.&nbsp;
She however re-opened the transaction, reviewed it and ordered that the
1st defendant pays the sum of GH¢29,500.00 together with interest
and further ordered the plaintiff to deliver to the 1st defendant
the original instrument covering House No. B2 Adogor.<o:p></o:p>Both parties were dissatisfied with the
judgement.&nbsp; The defendants have appealed
to this court in a Notice of Appeal filed on 1st November, 2007, praying
for the setting aside of the order by the trial court that the 1st
defendant pays money to the plaintiff.&nbsp;
The grounds of appeal are as follows:<o:p></o:p>a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The
trial court erred in law when it held that the loan transaction, the subject
matter of the action is void and unenforceable under the Moneylenders Act Cap
176 and sought to re-open same.<o:p></o:p>