AGRICULTURAL DEV. BANK LIMITED vs. WEBB BUILDERS LIMITED AND ANOTHER [2018]DLHC3906

Date	2018-06-25
Suit No.	SUIT NO. CM/BFS/0874/2016
Citation No.	[2018]DLHC3906

GEORGE BUADI J HIGH COURT (COMMERCIAL 5) LAW COURT COMPLEX ACCRA

EZIUCHE NWOSU FOR PLAINTIFF PRESENT

CHRISTOPHER KWAME MEENU FOR DEFENDANTS PRESENT

[2018]DLHC3906
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													<main id="main" class="content" style="min-height: 60rem" >AGRICULTURAL DEV. BANK
LIMITED<o:p></o:p>vs.<o:p></o:p>WEBB BUILDERS LIMITED
AND ANOTHER<o:p></o:p>[HIGH COURT (COMMERCIAL
5), ACCRA]<o:p></o:p>SUIT NO. CM/BFS/0874/2016&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;25TH JUNE, 2018<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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<o:p>&nbsp;</o:p>

</div>COUNSEL:<o:p></o:p>EZIUCHE NWOSU FOR PLAINTIFF PRESENT <o:p></o:p>CHRISTOPHER KWAME MEENU FOR DEFENDANTS PRESENT <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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<o:p>&nbsp;</o:p>

</div>CORAM:<o:p></o:p>GEORGE BUADI J HIGH
COURT (COMMERCIAL 5) LAW COURT COMPLEX, ACCRA <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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</div>JUDGMENT<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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</div>1.0 Background <o:p></o:p>1.1 Plaintiff is a local banking institution. 1st defendant
is a corporate entity and a customer of the bank, whilst 2nd defendant
is its managing director, who plaintiff bank claims executed a Contract of
Indemnity that guaranteed and secured repayment personally of a loan facility
the bank granted 1st defendant, which the bank claims had fallen due
and had remained unpaid. <o:p></o:p><o:p>&nbsp;</o:p>1.2 Plaintiff commenced this suit by a writ of summons on December
14, 2016 initially against 1st defendant. On January 12, 2018, upon
leave of the court, plaintiff joined 2nd defendant to the suit,
culminating in the amendment of the writ for the following reliefs against
defendants jointly and severally: <o:p></o:p><p class="MsoListParagraphCxSpFirst" style="text-align:justify;text-indent:-.25in;
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Recovery of One Million Five
Hundred and Forty Nine Thousand Three Hundred and Nine Cedis and Sixty-Five
Pesewas. (GH¢1, 549,309.65) being unpaid balance on the loan facility granted
the Defendants. <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;&nbsp;&nbsp;
Interest on the above sum at
the rate of 33.16% per annum from 7th September, 2014 until the date
of final payment. <o:p></o:p><p class="MsoListParagraphCxSpLast" style="text-align:justify;text-indent:-.25in;
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mso-border-shadow:yes">c&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Costs. <o:p></o:p><o:p>&nbsp;</o:p>2.0 Statements of parties’
case <o:p></o:p>2.1 Plaintiff’s case <o:p></o:p>Plaintiff’s case is that upon request of 1st defendant
for a loan to augment its working capital to complete construction of a
project, the plaintiff pursuant to a Facility Offer Letter dated September 17,
2013 granted a short-term loan of GH¢572,315 to 1st defendant. On
October 10, 2013, per a resolution of the Board of 1st defendant
dated <o:p></o:p>September 7, 2013 accepted the terms and conditions for grant of
the facility that included interest rate of 33.16% per annu</main>