PAUL JACQUAYE vs. IDEAL FINANCIAL HOLDINGS LTD [2016]DLHC3515

Date	2016-07-20
Suit No.	SUIT NO.RPC/07/2015
Citation No.	[2016]DLHC3515

HIS LORDSHIP ERIC KYEI BAFFOUR JUSTICE OF THE HIGH COURT

[2016]DLHC3515
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													<main id="main" class="content" style="min-height: 60rem" ><a name="OLE_LINK1">PAUL
JACQUAYE<o:p></o:p></a>vs.<o:p></o:p>IDEAL FINANCIAL HOLDINGS LTD<o:p></o:p>&nbsp;[HIGH COURT (COMMERCIAL
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">

SUIT
NO.RPC/07/2015&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &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: 20TH JULY, 2016 <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:0in 0in 1.0pt 0in">

HIS LORDSHIP ERIC KYEI BAFFOUR 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;
padding:0in 0in 1.0pt 0in">

JUDGEMENT<o:p></o:p>

</div>Plaintiff
claims the following endorsement on its writ issued on 06/07/15 against the
defendant:<o:p></o:p><ol style="margin-top:0in" start="1" type="1">
 <li class="MsoNormal" style="line-height:115%;mso-list:l2 level1 lfo1">An order for the payment of the sum of Four
 Million Ghana cedis.<o:p></o:p></li>
 <li class="MsoNormal" style="line-height:115%;mso-list:l2 level1 lfo1">Interest on the said sum at the prevailing
 interest rate from 1st July, 2014 till date of final payment.<o:p></o:p></li>
 <li class="MsoNormal" style="line-height:115%;mso-list:l2 level1 lfo1">Damages for breach of contract.<o:p></o:p></li>
 <li class="MsoNormal" style="line-height:115%;mso-list:l2 level1 lfo1">Costs.<o:p></o:p></li>
 <li class="MsoNormal" style="line-height:115%;mso-list:l2 level1 lfo1">Any other orders the court may deem fit.<o:p></o:p></li>
</ol>The plaintiff provides the basis of his claim to the
reliefs he seeks in the statement of claim that accompanied the writ. He styles
himself as a businessman and a former majority shareholder cum chairman of the
Board of Directors of Ezi Savings and Loans Ltd. Plaintiff claims that sometime
in 2014, based on a series of negotiations with the defendant, plaintiff agreed
to sell his 70% shares in Ezi Savings &amp; Loans amounting to 7.000.000 shares
to defendant at a price of Ghc 5.000.000.00. Defendant paid Ghc1.000.000.00 and
was supposed to pay Ghc4.000.000.00 by September, 2014, after defendant had
completed an audit of Ezi Savings &amp; Loans. To plaintiff the terms of this
agreement were initially captured in a memorandum of understanding (MOU) signed
between them which provided that if the auditing gave different information
from what plaintiff had provided defendant was at liberty to withdraw from the
contract and demand a return of the deposit paid with interest on the amount. <o:p></o:p><o:p>&nbsp;</o:p>Bank of Ghana which had regulatory oversight was duly
informed and it gave approval for the transaction. Besides the MOU which was
signed, the parties also executed what they called Share Purchase Agreement
(SPA). Defendant carried out the financial due diligence on Ezi Savings &amp; Loans
Ltd and completed same in July, 2014. Plaintiff further claim that defendant
duly received the financial due diligence of Ezi Savings &amp; Loans and afterwards
decided to proceed with the transaction. That the Board of Ezi Savings &amp; Loans
was formally dissolved in a meeting on 21st July, 2014 at Madina.
The defendant took over and changed the name of Ezi Savings &amp; Loans to
First Trust Savings &amp; Loans Ltd (1st Trust S&amp;L) with a new
Chief Executive Officer. In terms of the MOU signed, according to plaintiff, defendant
should have paid all the Ghc5.000.000.00 by September, 2014 and yet the
defendant has still not fulfilled its promise. Defendant has communicated to
him of its intention not to make further payments because of a
misrepresentation of information to it. Plaintiff then concludes that defendant
has no intention of paying its outstanding obligations unless compelled by the
court and hence its claim before the court. <o:p></o:p><o:p>&nbsp;</o:p>DEFENDANT’S
ANSWER AND COUNTER CLAIM<o:p></o:p>Defendant has contested the claim of plaintiff and has
counter claimed for the following reliefs in its amended statement of defence
and counter claim:<o:p></o:p><ol style="margin-top:0in" start="1" type="a">
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l4 level1 lfo2">Payment of the sums of GH¢698,762.67 (Clydestone),
 GH¢1,458.62 (Transol) and GH¢167,700.56 and GH¢1,509,644.42 (Parod) owed
 by the said companies to First Trust Savings and Loans.<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l4 level1 lfo2">Interest on the said amounts at the agreed rates
 from 31/01/15 to the date of final payment.<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l4 level1 lfo2">Payment of all other sums of money found due to
 First Trust Savings and Loans from the Plaintiff together with interest.<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l4 level1 lfo2">General damages for fraudulent misrepresentation.<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l4 level1 lfo2">&nbsp;An order
 directed at the Plaintiff to transfer the shares the Defendant purchased
 from him in Ezi Savings and Loans Ltd to her or that the Registrar of this
 Court transfers the said shares to the Defendant at the cost of the
 Plaintiff.<o:p></</main>