[2018]DLHC3730 Login to Read Full Case <span style="font-size: 18px !important;"><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">HFC BANK GHANA LIMITED<o:p></o:p></span></b></p><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">vs.<o:p></o:p></span></b></p><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">DOVEWELL COMPANY LIMITED AND ERIC KWAME BOAKYE<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><span style="font-size: 12pt; line-height: 115%; font-family: "Book Antiqua", serif;"> </span><span style="font-size: 10pt; line-height: 115%; font-family: "Book Antiqua", serif;">[HIGH COURT (COMMERCIAL DIVISION), KUMASI]</span><b><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Tahoma"><o:p></o:p></span></b></p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt; padding:0in 0in 1.0pt 0in"> <p class="MsoNormal" style="margin-bottom:6.0pt;text-align:justify;line-height: 115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in; mso-padding-alt:0in 0in 1.0pt 0in"><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">NO.MISC/2/18 </span><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"; mso-bidi-font-family:"Times New Roman""> </span><span style="font-size: 10pt; line-height: 115%; font-family: "Book Antiqua", serif;">DATE:</span><span style="font-size:10.0pt;line-height:115%; font-family:"Book Antiqua","serif";mso-bidi-font-family:"Times New Roman""> </span><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"; mso-bidi-font-family:Tahoma">15<sup>TH</sup> JANUARY, 2018<o:p></o:p></span></p> </div><p class="MsoNoSpacing" style="line-height:115%"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"; mso-fareast-font-family:"Book Antiqua"">COUNSEL: <o:p></o:p></span></b></p><p class="MsoNoSpacing" style="line-height:115%"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif"">MARIAM JAWHARY FOR RESPONDENT.<o:p></o:p></span></p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt; padding:0in 0in 1.0pt 0in"> <p class="MsoNoSpacing" style="line-height:115%;border:none;mso-border-bottom-alt: solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 1.0pt 0in"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">SULLEY SAMBIAN FOR APPLICANT.<o:p></o:p></span></p> </div><p class="MsoNoSpacing" style="line-height:115%"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"; mso-fareast-font-family:"Book Antiqua"">CORAM:<o:p></o:p></span></b></p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt; padding:0in 0in 1.0pt 0in"> <p class="MsoNoSpacing" style="line-height:115%;border:none;mso-border-bottom-alt: solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 1.0pt 0in"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">ANGELINA MENSAH-HOMIAH (MRS.) JUSTICE OF THE HIGH COURT<o:p></o:p></span></p> </div><p class="MsoNoSpacing" style="line-height:115%"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"; mso-fareast-font-family:"Book Antiqua""><o:p> </o:p></span></b></p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt; padding:0in 0in 1.0pt 0in"> <p class="MsoNormal" align="center" style="text-align:center;line-height:115%; border:none;mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in; mso-padding-alt:0in 0in 1.0pt 0in"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"; mso-bidi-font-family:Tahoma">RULING<o:p></o:p></span></b></p> </div><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">This ruling is in respect of an application for Judicial Sale of a mortgaged property filed by counsel for the Applicant Bank. The background facts are that sometime in the year 2007, the Applicant granted a loan of GHC 370,000.00 to the 1<sup>st</sup> Respondent, acting through the 2<sup>nd</sup> Respondent, to enable it put up a commercial property on plots numbered 1, 2 and 4 Block XV OTA Adum, Kumasi. Following a restructuring of the loan in the year 2010, and at a time when the debt was GHC 581,960.00, a restructured loan agreement and a mortgage deed were executed between the parties. After a series of negotiations, 1<sup>st</sup> Respondent paid an amount of GHC 600,000.00 to the Applicant to cover the principal sum and accrued interest. However, pursuant to further negotiations, the 1<sup>st</sup> Respondent was to pay an amount of GHC 100,000.00 in a single bullet payment by 31/07/2015 after which the bank was to release the mortgaged documents of the 2<sup>nd</sup> Respondent and discharge the Respondents accordingly. The Respondents were unable to make this bullet payment but made a part payment. Then, on 28/07/2017, the instant application for judicial sale was filed because, according to the applicant, the entire amount due prior to the negotiations had become due as a result of the non-payment of the GHC 100,000.00 in the agreed manner. As at the time of the application, the alleged debit balance stood at GHC 927,438.65, and the Applicant sought to recover the same.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">Order 19 rule (2) (1) of the High Court (Civil Procedure Rules) 2004, C.I. 47 provides that:<o:p></o:p></span></i></p><p class="MsoNormal" style="text-align: justify; line-height: 115%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><b><i><span style="font-size: 12pt; line-height: 115%; font-family: "Book Antiqua", serif;">Applications to be made by motion</span></i></b><i><span style="font-size: 12pt; line-height: 115%; font-family: "Book Antiqua", serif;"><o:p></o:p></span></i></p><p class="MsoNormal" style="text-align: justify; line-height: 115%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><i><span style="font-size: 12pt; line-height: 115%; font-family: "Book Antiqua", serif;"> 1. (1) Every application in pending proceedings shall be made by motion.</span></i><i><span style="font-size: 12pt; line-height: 115%; font-family: "Book Antiqua", serif;"><o:p></o:p></span></i></p><p class="MsoNormal" style="text-align: justify; text-indent: 0.5in; line-height: 115%; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><i><span style="font-size: 12pt; line-height: 115%; font-family: "Book Antiqua", serif;">(2) Proceedings by which an application is to be made to the Court or a Judge of the Court under any enactment shall be initiated by motion and where an enactment provides that an application shall be made by some other means, an application by motion shall be deemed to satisfy the provision of the enactment as to the making of the application.</span></i><i><span style="font-size: 12pt; line-height: 115%; font-family: "Book Antiqua", serif;"><o:p></o:p></span></i></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">It is also provided under section 18 of the Mortgages Act 1972, NRCD 96 as follows:<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> 18. Judicial sale<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">1) On the failure of performance of an act secured by the mortgage, the <b>mortgagee may apply to the Court for an order for the judicial sale of the mortgaged property</b>, and on being satisfied as to the existence of grounds for the application, the Court shall, on the conditions that it considers just and equitable, grant an order for judicial sale of all or a part of the mortgaged property. <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">(2) In considering what conditions to attach to an order for judicial sale the Court shall consider what opportunity the mortgagee has afforded to the mortgagor or obligor or both of them to remedy the failure of performance.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">By the combined effect of the foregoing provisions, an order for Judicial Sale can be sought by an originating notice of motion, supported by an affidavit and all relevant matters are to be disclosed in the affidavit. <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">On the face of the originating notice of motion filed by the Applicant herein on 28/07/2017, the Company seeks an order for Judicial Sale from this court. However, the body of the motion reads:<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif