SINAPA ABA SAVINGS AND LOANS LIMITED vs. PRIME MOTORS LIMITED & ANOR [2018]DLHC3745

Date	2018-05-30
Suit No.	SUIT NO. RPC/39/17
Citation No.	[2018]DLHC3745

HER LADYSHIP ANGELINA MENSAH-HOMIAH (MRS.)

AUGUSTINE ASANTE ADDAE FOR K.P. NKANSAH FOR PLAINTIFF

ABASS AMANKWA FOR DEFENDANTS.

[2018]DLHC3745
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													<main id="main" class="content" style="min-height: 60rem" ><a name="OLE_LINK1"></a><a name="OLE_LINK11"></a><a name="OLE_LINK12">SINAPA ABA
SAVINGS AND LOANS LIMITED<o:p></o:p></a>vs.<o:p></o:p>PRIME MOTORS LIMITED &amp; ANOR<o:p></o:p>&nbsp;[HIGH COURT (COMMERCIAL DIVISION), KUMASI]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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SUIT NO. RPC/39/17&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; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;DATE: 30TH MAY, 2018<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p>AUGUSTINE
ASANTE ADDAE FOR K.P. NKANSAH FOR PLAINTIFF <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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ABASS AMANKWA FOR
DEFENDANTS.<o:p></o:p>

HER LADYSHIP ANGELINA
MENSAH-HOMIAH (MRS.)<o:p></o:p>

JUDGMENT<o:p></o:p>

</div>This
is a loan recovery action in which the Plaintiff bank seeks to recover the sum
of GHC 190,299.66 and interest thereon&nbsp;&nbsp;
from the Defendants as debtor and guarantor respectively.&nbsp; The case of the Plaintiff&nbsp;&nbsp; is that on 03/12/2014 it granted a credit
facility of GHC 200,000.00 to the 1st Defendant at its request for a
period of twenty-four months which has since elapsed. The 1st Defendant
secured repayment of the loan with its machinery and also executed an equitable
mortgage over its building; the 2nd Defendant executed a contract of
indemnity. The Plaintiff stated that the Defendants have defaulted in
fulfilling their respective obligations under the facility in issue.<o:p></o:p>The
Defendants caused a lawyer to enter appearance on their behalf, and he
proceeded to file a statement of defence. Directions for the filing of witness
statements were given on 12/02/2018, the defendants who failed to comply with
the timelines ,were given seven days extension of time within which to file
their witness statements. That did not also work for them, on 16/04/2018, their
lawyer informed the court that Prime Motors is virtually non-existent and he
was finding it difficult to get the witnesses so as to file their statements.<o:p></o:p>&nbsp;On 18/04/2018, counsel for the Plaintiff prayed
the court to strike out the statement of defence and counterclaim of the Defendants
for failing to comply with the orders given at the Case Management Conference.
The court accordingly struck out the statement of defence and counterclaim
filed by the Defendants on 31/03/2017 under Order 32 rule 7A (3) (b) of the High
Court (Civil Procedure) (Amendment) Rules, 2014 C.I. 87.&nbsp; A date was set for the Plaintiff to prove its
case, and counsel for the defendants attended court to cross-examine the
plaintiff’s representative. <o:p></o:p>ISSUES FOR TRIAL<o:p></o:p>The
issues set down for trial are:<o:p></o:p>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whether the Plaintiff granted a loan
facility in the sum of GHC 200,000.00 to 1st Defendant?<o:p></o:p>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whether it was agreed that the facility was
to attract interest at 39% per annum?<o:p></o:p>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whether 1st Defendant executed
an equitable mortgage over its building property as security for the loan?<o:p></o:p>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whether 2nd Defendant executed a
contract of indemnity in favour of the Plaintiff in respect of the loan
facilit</main>