THE ROYAL LIMITED vs. UNITED STEEL AND TRADING CO. LTD AND 2 OTHERS [2018]DLHC3854

Date	2018-06-28
Suit No.	SUIT NO. CM/BFS/0866/2016
Citation No.	[2018]DLHC3854

ERIC K. BAFFOUR ESQ. JUSTICE OF THE HIGH COURT

PLAINTIFF REPRESENTED BY JANET TETTEH WAYO.

COUNSEL FOR PLAINTIFF – DERRICK DELALI KUSHITOR

COUNSEL FOR DEFENDANTS – DAVID KUDOADZI

[2018]DLHC3854
																																						<div class="restriction-wrapper">
														<div class="container-lg">
															<div class="row">
																<div class="col-md-12 restricted-content">
																	<div class="restricted-content-img-wrapper">
																		<div class="lock-icon bounce-7">
																			<img class=""
																				src="https://www.dennislawgh.com/dl-assets/dl-images/lock-content.png"
																				alt="Subscription based content">
																		</div>
																	</div>
																	 
																		<a href="https://www.dennislawgh.com/login"
																		class="btn btn-primary btn-lg"
																		style="font-family: 'open sans'; text-transform: capitalize; border-radius: 8px"> 
																		Login to Read Full Case </a>
																	 
																	
																</div>
															</div>
														</div>
													</div>
													<main id="main" class="content" style="min-height: 60rem" >THE ROYAL LIMITED<o:p></o:p>vs.<o:p></o:p>UNITED STEEL AND TRADING
CO. LTD AND 2 OTHERS<o:p></o:p>[HIGH COURT (COMMERCIAL
DIVISION), ACCRA]<o:p></o:p>SUIT NO. CM/BFS/0866/2016&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;28TH JUNE, 2018<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:31.0pt 31.0pt 1.0pt 31.0pt;mso-border-shadow:yes">

<o:p>&nbsp;</o:p>

</div>COUNSEL:<o:p></o:p>PLAINTIFF REPRESENTED BY JANET TETTEH WAYO. <o:p></o:p>COUNSEL FOR PLAINTIFF – DERRICK DELALI KUSHITOR <o:p></o:p>COUNSEL FOR DEFENDANTS – DAVID KUDOADZI <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 31.0pt 1.0pt 31.0pt">

<o:p>&nbsp;</o:p>

</div>JUDGMENT<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 31.0pt 1.0pt 31.0pt">

</div>Plaintiff claims the following reliefs endorsed on its writ issued
against the defendant: <o:p></o:p><p class="MsoListParagraphCxSpFirst" style="text-align:justify;text-indent:-.25in;
mso-pagination:none;mso-list:l0 level1 lfo1;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;
mso-border-shadow:yes">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Recovery of the sum of
Thirty-Four Million, Three Hundred and Seventy-One Thousand, One Hundred and
Eighty –Nine Ghana Cedis and Twenty-Nine Pesewas Gh¢34,371,189.29 <o:p></o:p><p class="MsoListParagraphCxSpMiddle" style="text-align:justify;text-indent:-.25in;
mso-pagination:none;mso-list:l0 level1 lfo1;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;
mso-border-shadow:yes">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Recovery of interest on the
said sum, at the contractual default compound interest rate of 42.5% per annum
accruing from day to day and compounded monthly till date of final payment&nbsp; <o:p></o:p><p class="MsoListParagraphCxSpMiddle" style="text-align:justify;text-indent:-.25in;
mso-pagination:none;mso-list:l0 level1 lfo1;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;
mso-border-shadow:yes">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cost including legal fees on a
full indemnity basis <o:p></o:p><p class="MsoListParagraphCxSpLast" style="text-align:justify;text-indent:-.25in;
mso-pagination:none;mso-list:l0 level1 lfo1;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;
mso-border-shadow:yes">d.&nbsp;&nbsp;&nbsp;&nbsp;
Such further order(s) as the
court may deem fit. <o:p></o:p><o:p>&nbsp;</o:p>The factual basis for the claim of the Plaintiff can be summarized
as follows: That Defendant by a board resolution resolved to request banking
credit facility from the Plaintiff Bank. And by a deferred letter of credit Plaintiff
granted an amount of USD$7,330,000.00 to the 1st Defendant
institution for which 2nd and 3rd Defendants being
directors of the 1st Defendant gave personal guarantees among other
securities for the due repayment of the monies. The facility granted included a
short term loan in the sum of USD$3,665,000 whose purpose was to increase
available funds for the payment of deferred letters of credit from
USD$2,120,000 to USD$3,665,000. Plaintiff further aver that the interest rate
was 32.5% per annum for twelve months with each draw down payable within 60
days payable from the proceeds of the business of the 1st Defendant.
That the loans were secured with securities including a first ranking charge
over fixed and floating assets of factory equipment at Tema Free Zone enclave,
a deed of assignment of receivables, joint and several guarantees executed by 2nd
and 3rd Defendants. <o:p></o:p><o:p>&nbsp;</o:p>