AGRICULTURAL DEV. BANK vs. JOWAK COMMODITIES LTD VS JOHN OWUSU AMANKWAH [2018]DLCA6167

Date	2018-11-22
Suit No.	CIVIL APPEAL SUIT NO: H1/44/18
Citation No.	[2018]DLCA6167

K. A. ACQUAYE JA (PRESIDING)

BARBARA ACKAH-YENSU JA

TANKO AMADU JA

MR. S. K. AMOAH FOR DEFENDANTS/APPELLANTS

MR. FELIX QUARTEY FOR PLAINTIFF/RESPONDENTS

[2018]DLCA6167
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													<main id="main" class="content" style="min-height: 60rem" >AGRICULTURAL DEV. BANK<o:p></o:p>[PLAINTIFF/RESPONDENT]<o:p></o:p>vs.<o:p></o:p>JOWAK COMMODITIES LTD VS
JOHN OWUSU AMANKWAH<o:p></o:p>[DEFENDANTS/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;
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CIVIL APPEAL SUIT NO: H1/44/18&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &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: 22ND NOV.,
2018<o:p></o:p>

</div>COUNSEL:<o:p></o:p>MR.
S. K. AMOAH FOR DEFENDANTS/APPELLANTS<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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MR.
FELIX QUARTEY FOR PLAINTIFF/RESPONDENTS<o:p></o:p>

</div>CORAM: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>K.
A. ACQUAYE JA (PRESIDING), BARBARA ACKAH-YENSU JA, TANKO AMADU JA<o:p></o:p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt;
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<p class="MsoNormal" align="center" style="text-align:center;line-height:115%;
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</div>BARBARA
ACKAH-YENSU, JA<o:p></o:p>The Plaintiff/Respondent (hereinafter simply
referred to as the Respondent) instituted the action culminating in this
appeal, against the Defendants/Appellants (also to be referred to simply as the
Appellants).&nbsp; The claim was for:<o:p></o:p>“1. Recovery of the sum of Gh¢552,486,368.50 being monies <o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp; owed
and due the Plaintiff as financial facility granted the&nbsp;&nbsp;&nbsp; <o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;
Defendant.<o:p></o:p>&nbsp; 2. Interest on the sum at the agreed rate of
15% per annum <o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from the 30th June 2010 to
date of final judgment”.<o:p></o:p>These are the matters that gave rise to the action
at the trial High Court.<o:p></o:p>The Respondent is a financial institution
registered and doing business in Ghana.&nbsp;
The 1st Appellant is a limited liability company registered
under the laws of Ghana and a customer of the Plaintiff.&nbsp; The 2nd Appellant is the Managing
Director of the 1st Appellant-Company.&nbsp; By their Amended Statement of Claim, the
Respondent at the request of Appellants approved a loan facility of
Gh¢3,000,000.00 on 2nd January, 2010 to 1st Appellant to
purchase 99,000 mini bags of maize for storage and re-sale under a dual control
arrangement with the 2nd Appellant guaranteeing the facility. It was
agreed between the Parties that the facility should attract interest of 33% per
annum.&nbsp; The facility granted the
Appellants was secured with a charge over their plant and machinery which was
executed by the 2nd Appellant, together with a
Directors’/Shareholders’ Indemnity. Respondent disbursed the loan facility to
the Appellants in tranches.&nbsp; <o:p></o:p><o:p>&nbsp;</o:p>The first tranche of Gh¢1,500,000.00 was paid in
February 2010, which 1st Appellant used to purchase and store 52,000
mini bags to maize. After releasing the first tranche, the Appellants applied
for the release of the second tranche in April 2010 to purchase and store the
remaining bags of maize which was 47, 000mini bags.&nbsp; The release of the second tranche was
contingent upon fulfillment of dual control over the stocks to be ensured at
the storage site by the Respondent and the 1st Appellant.&nbsp; According to the Respondent, the available
warehouse for the storage of the maize could not contain the remaining 47, 000
mini bags.&nbsp; As a result, the Respondent
disbursed Gh¢550,000.00 to the Appellant for the purchase and storage of 25,000
mini bags of maize in May 2010.<o:p></o:p><o:p>&nbsp;</o:p>In all, the Respondent released an amount of
Gh¢2,050,000.00 to the Appellants for the purchase and storage of maize,
however, the Appellants have defaulted in its repayment.&nbsp; As at 31st January 2011 the
Appellants indebtedness to the Respondent stood at Gh¢2,486,368.50.<o:p></o:p><o:p>&nbsp;</o:p>By their Amended Statement of Defence, the
Appellants, on the other hand, admitted that the Respondent approved a loan
facility of Gh¢3,000,000.00 to the 1st Appellant but contended that
the Respondent failed without any justifiable cause, and in breach of its
obligation, to make the total sum available to the 1st Appellant.
The 1st Appellant therefore counterclaimed against the Respondent
for:<o:p></o:p><o:p>&nbsp;</o:p>