UNION SAVINGS AND LOANS LTD vs. DREAM FINANCE LTD. [2016]DLHC3519

Date	2016-02-18
Suit No.	SUIT NO.MISC/0006/2015
Citation No.	[2016]DLHC3519

HIS LORDSHIP ERIC KYEI BAFFOUR JUSTICE OF THE HIGH COURT

AKEMBEK ESQ FOR APPLICANT

OSAFO BUABENG ESQ. FOR RESPONDENT

<p class="mb-5" id="contentDlCitation"  hidden>[2016]DLHC3519</p>
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size: 18px !important;"><span style="font-size: 18px !important;"><p class="MsoNormal" align="center" style="margin-bottom: 7.5pt; text-align: center; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><a name="OLE_LINK1"><b><span lang="en-GH" style="font-size:12.0pt;font-family:&quot;Book Antiqua&quot;,serif;mso-fareast-font-family:
&quot;Times New Roman&quot;;mso-bidi-font-family:&quot;Times New Roman&quot;;color:#00B0F0;
mso-fareast-language:#0C00">UNION SAVINGS AND LOANS LTD</span></b></a><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;"><o:p></o:p></span></p><p class="MsoNormal" align="center" style="margin-bottom: 7.5pt; text-align: center; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><b><span lang="en-GH" style="font-size:
12.0pt;font-family:&quot;Book Antiqua&quot;,serif;mso-fareast-font-family:&quot;Times New Roman&quot;;
mso-bidi-font-family:&quot;Times New Roman&quot;;color:#00B0F0;mso-fareast-language:#0C00">vs.</span></b><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;"><o:p></o:p></span></p><p class="MsoNormal" align="center" style="margin-bottom: 7.5pt; text-align: center; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><b><span lang="en-GH" style="font-size:
12.0pt;font-family:&quot;Book Antiqua&quot;,serif;mso-fareast-font-family:&quot;Times New Roman&quot;;
mso-bidi-font-family:&quot;Times New Roman&quot;;color:#00B0F0;mso-fareast-language:#0C00">DREAM
FINANCE LTD.</span></b><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;"><o:p></o:p></span></p><p class="MsoNormal" align="center" style="margin-bottom: 7.5pt; text-align: center; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span lang="EN-GB" style="font-size: 10pt; font-family: &quot;Book Antiqua&quot;, serif;">[HIGH COURT (COMMERCIAL DIVISION), ACCRA]</span><span lang="en-GH" style="font-size: 10pt; font-family: &quot;Book Antiqua&quot;, serif;"><o:p></o:p></span></p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1.5pt solid windowtext; padding: 0cm 0cm 1pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">

<p class="MsoNormal" align="center" style="margin-bottom: 6pt; text-align: center; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; border: none; padding: 0cm;"><span lang="EN-GB" style="font-size: 10pt; font-family: &quot;Book Antiqua&quot;, serif;">SUIT&nbsp;NO.MISC/0006/2015&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;DATE:&nbsp;18<sup>TH&nbsp;</sup>FEBRUARY, 2016<o:p></o:p></span></p>

<p class="MsoNormal" style="margin-bottom: 7.5pt; text-align: justify; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; border: none; padding: 0cm;"><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;">OSAFO BUABENG, ESQ. FOR RESPONDENT<o:p></o:p></span></p>

<p class="MsoNormal" align="center" style="margin-bottom: 7.5pt; text-align: center; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; border: none; padding: 0cm;"><b><span lang="EN-GB" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;">RULING<o:p></o:p></span></b></p>

</div><p class="MsoNormal" style="margin-bottom: 7.5pt; text-align: justify; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;"><o:p>&nbsp;</o:p></span></p><p class="MsoNormal" style="margin-bottom: 7.5pt; text-align: justify; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;">On the 2/12/15 the
court granted an application filed by the Lender/Respondent herein on a motion
for the possession of H/N Plot No 340 Trasacco Valley Estates, Accra under
section 34(2) of the Borrowers and Lenders Act, Act 773. The applicant herein
was served with the application but failed to appear before the court. It is
the grant of the application for a warrant for the possession of the said property
that has ignited the present application wherein the borrower/applicant seeks
to set aside the grant of the warrant.<o:p></o:p></span></p><p class="MsoNormal" style="margin-bottom: 7.5pt; text-align: justify; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;">&nbsp;<o:p></o:p></span></p><p class="MsoNormal" style="margin-bottom: 7.5pt; text-align: justify; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;">To fully appreciate
the principles that will govern the grant or refusal of this application it
would be useful to set out the background facts that has led to this present
application. The lender in August 7, 2014 made an investment placement with the
borrower/applicant in the sum of Gh¢5.000.000.00. The lender sometime later
made a demand for those sums of monies deposited as investment capital with the
borrower/applicant. Instead of their monies being paid back to them, the
borrower/applicant rather asked for a loan of Gh¢5.000.000.00 for a two year
period to use as a working capital. This was agreed to and accordingly the investment
amount which had accrued interest and the requested loan amount of
Gh¢5.000.000.00 were both consolidated as a loan per an offer letter dated the
23<sup>rd</sup>&nbsp;April, 2015.<o:p></o:p></span></p><p class="MsoNormal" style="margin-bottom: 7.5pt; text-align: justify; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;">&nbsp;<o:p></o:p></span></p><p class="MsoNormal" style="margin-bottom: 7.5pt; text-align: justify; line-height: 15.55pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><span lang="en-GH" style="font-size: 12pt; font-family: &quot;Book Antiqua&quot;, serif;">As part of the
conditions for the disbursement of the loan of Gh¢5.000.000.00 the
borrower/applicant was required to meet certain conditions precedent including
the provision of shareholder’s guarantee as well as directors’ personal
guarantee. Security in the form of a property situate at Trasacco Valley was
used as the mortgage property. The lender proceeded to effect the necessary
registration of the loan and the use of the property as security under </main>