FIRST NATIONAL SAVINGS & LOANS COMPANY LIMITED vs. PRUDENT EXPORT LIMITED [2017]DLHC3958

Date	2017-08-18
Suit No.	SUIT NO: AB/18/2012
Citation No.	[2017]DLHC3958

JUSTICE KWEKU T. ACKAAH-BOAFO

MR. DENNIS OWUSU-APPIAH OFOSUAPEA FOR THE PLAINTIFF

ALHAJI FAROUK SEIDU FOR THE DEFENDANT

[2017]DLHC3958
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													<main id="main" class="content" style="min-height: 60rem" >FIRST NATIONAL SAVINGS
&amp; LOANS COMPANY LIMITED<o:p></o:p>vs.<o:p></o:p>PRUDENT EXPORT LIMITED<o:p></o:p>[HIGH
COURT (GENERAL JURISDICTION DIVISION, COURT 6) 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: AB/18/2012&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;DATE: 18TH AUGUST, 2017.<o:p></o:p>

ALHAJI
FAROUK SEIDU FOR THE DEFENDANT&nbsp; <o:p></o:p>

<p class="MsoNormal" align="center" style="text-align:center;line-height:115%;
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solid windowtext 1.5pt;padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in">JUDGMENT<o:p></o:p>

</div>Introduction <o:p></o:p>[1] By a writ of
summons filed on the 28th October, 2011 the Plaintiff claims against the
Defendant the following reliefs: <o:p></o:p>a.
A Declaration that the Defendant is in breach of the Loan Agreement dated 1st
May, 2009 <o:p></o:p>b.
Recovery of the sum of (GH₵
1,090,033.33) being the outstanding loan balance of
facility granted to the Defendant pursuant to Loan Agreement dated 1st May,
2009 which the Defendant has failed and or refused to pay; <o:p></o:p>c.
Interest on the sum of GH₵
1,090,033.33 at the contractual rate of interest from
14th October, 2011 till date of final payment, or in the alternative.&nbsp; <o:p></o:p>d.
An order for judicial sale of machinery, equipment and plants purchased by
Defendant with funds from the facility <o:p></o:p>e.
Cost&nbsp; <o:p></o:p>f.
Any other legal or equitable relief. <o:p></o:p>[2] An appearance was
entered and a Statement of Defence was filed by the Defendant after the service
of the Writ and Statement and same was later amended on August 18, 2016. The
Plaintiff filed a reply to respond to the defence filed.&nbsp; <o:p></o:p>&nbsp;<o:p></o:p>Plaintiff’s Claim <o:p></o:p>[3] The case of the
Plaintiff is that it granted to the Defendant a Seven Hundred and Fifty
Thousand Ghana Cedis (GH₵
750,000.00) pursuant to a Loan Agreement dated 1st May, 2009 to
support the Defendant’s
farming and export business under the Millennium Challenge Account sponsored
program. According to the Plaintiff, the tenure of the facility was for a
period of 36 Months at an agreed interest rate of 25% per annum. It is also the
pleading of the Plaintiff that the Agreement provided that there shall be a
moratorium of 18 months and the repayment of principal and interest shall
become due and payable from August, 2010. <o:p></o:p>[4] It is the
Plaintiff’s further pleading that the Defendant used the facility to purchase
equipment for the use on its farms. According to the Plaintiff, contrary to the
terms of the agreement and the Payment schedule, the Defendant made a total
payment of GH₵
63,300 out of its total indebtedness at the time the instant
action was instituted. According to the Plaintiff even though at the time the
writ of summons was issued the “facility has not yet expired” the conduct of
the Defendant amounted to breach and violation of the terms and conditions of
the Agreement because “the Defendant evinces a clear intention not to abide by
the terms of the repayment pursuant to the said Agreement”. <o:p></o:p>[5] The Plaintiff
claims that it caused several demand notice(s) on the Defendant to demand
“remedy of the default and full repayment of unpaid monthly installment but the
Defendant failed to pay the full outstanding amount it owed”. The Plaintiff
says the Defendant has breached all the terms and covenants of the facility and
that as of 14th October, 2011 the principal together with the accrued interest
was One Million, and Ninety Thousand, Thirty Three Ghana Cedis, Thirty Three
pes</main>