NDK FINANCIAL SERVICES LIMITED vs. THE REPUBLIC (1ST DEFENDANT) KOSEFIELD ENTERPRISE LTD. AND GLICO GENERAL INSURANCE CO. LTD. [2016]DLCA8610

NDK FINANCIAL SERVICES LIMITED vs. THE REPUBLIC (1ST DEFENDANT) KOSEFIELD ENTERP... [2016]DLCA8610

Date	2016-11-17
Suit No.	CIVIL APPEAL NO: H1/156/2014
Citation No.	[2016]DLCA8610

KANYOKE JA (PRESIDING)

ADUAMA OSEI JA

WELBOURNE (MRS) JA

PEASAH BOADU FOR PLAINTIFF/RESPONDENT/APPELLANT

NICOLE-MAME POKU FOR 2ND

DEFENDANT/APPELLANT/RESPONDENT

[2016]DLCA8610
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													<main id="main" class="content" style="min-height: 60rem" >NDK FINANCIAL SERVICES LIMITED&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp; (PLAINTIFF/RESPONDENT/APPELLANT)<o:p></o:p>vs.<o:p></o:p>THE REPUBLIC<o:p></o:p>(1ST DEFENDANT)<o:p></o:p>KOSEFIELD ENTERPRISE LTD. AND GLICO GENERAL INSURANCE CO. LTD.<o:p></o:p>(2ND
DEFENDANT/APPELLANT/RESPONDENT )<o:p></o:p><o:p>&nbsp;</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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CIVIL APPEAL NO: H1/156/2014&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; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;DATE: 17TH NOV, 2016<o:p></o:p>

</div>COUNSEL:<o:p></o:p>PEASAH
BOADU FOR PLAINTIFF/RESPONDENT/APPELLANT<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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NICOLE-MAME POKU FOR 2ND
DEFENDANT/APPELLANT/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;
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KANYOKE JA (PRESIDING), ADUAMA OSEI JA,
WELBOURNE (MRS) JA <o:p></o:p>

</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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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JUDGMENT<o:p></o:p>

</div>ADUAMA OSEI<o:p></o:p>In
this judgment, the Plaintiff/Respondent/Appellant is referred to as “the Plaintiff” and the 2nd Defendant/Appellant/Respondent is
referred to as “the 2nd Defendant”. The 1st
Defendant will continue to be referred to as such.<o:p></o:p>By
its writ of summons issued in the Commercial Division of the High Court, Accra,
on 20th October, 2009, the Plaintiff claimed the following reliefs
against the Defendants:<o:p></o:p>“a) An
order for recovery of the sum of GH¢398,522.00 being the balance due and owing
as at September 30, 2009, on account of credit facilities extended to 1st
Defendant Company by Plaintiff Company between 11th May, 2007 and 17th
December, 2007, repayment of which was secured by credit guarantee bonds issued
by 2nd Defendant but settlement of which Defendants have failed to
make good, several demand notices notwithstanding.<o:p></o:p><o:p>&nbsp;</o:p>“b) Interest
on the said sum of GH¢398,522.00 at the rate of 5.5% per month calculated at
the close of each day and payable at the end of every month from September 30,
2009, up to and inclusive of date of final payment.<o:p></o:p><o:p>&nbsp;</o:p>“c) Costs
including legal fees”.<o:p></o:p><o:p>&nbsp;</o:p>In
the statement of claim that accompanied the writ of summons, the Plaintiff had
reiterated the claim as made under relief (a) that the debt had arisen from credit
facilities it granted to the 1st Defendant at various times between
May, 2007 and December, 2007, repayment of which had been secured under and by
virtue of credit guarantee bonds executed by the 2nd Defendant.<o:p></o:p><o:p>&nbsp;</o:p>The
1st Defendant had in its statement of defence, admitted the
indebtedness but had contended that, having received payments for the issuance
of the bonds, the 2nd Defendant was liable to the Plaintiff for its settlement.
The 2nd Defendant had however, on ground of collusion or fraud,
contended in its statement of defence that it was not liable for settlement of
the debt, and had proceeded to counterclaim for a declaration to that effect.
It had also sought an order setting the said bonds aside. <o:p></o:p><o:p>&nbsp;</o:p>In
its judgment dated the 1st of November, 2013, the trial Court had rejected
the 2nd Defendant’s contention that it was not liable under the
bonds and had accordingly entered judgment against the Defendants in favour of
the Plaintiff for the debt plus interest. The interest payment had however been
ordered to be made up to the date of judgment, but not up to the date of final
payment as claimed by the Plaintiff. Not satisfied with the decision holding it
liable </main>