GHANA GROWTH FUND LTD vs. TALKAI COMPANY LTD & 5 OTHERS [2018]DLHC6298

Date	2018-01-25
Suit No.	RPC/137/15
Citation No.	[2018]DLHC6298

JUSTICE JENNIFER A. DODOO (MRS)

FREDERICK BOAMAH FOR PLAINTIFF

NO APPEARANCE ON BEHALF OF DEFENDANTS

[2018]DLHC6298
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													<main id="main" class="content" style="min-height: 60rem" >GHANA GROWTH FUND LTD<o:p></o:p>{PLAINTIFF}<o:p></o:p>vs.<o:p></o:p>TALKAI COMPANY LTD &amp;
5 OTHERS<o:p></o:p>{DEFENDANTS}<o:p></o:p>[HIGH COURT (COMMERCIAL DIVISION),
ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

<h1 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">RPC/137/15&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: 25TH JANUARY 2018<o:p></o:p></h1>

</div>COUNSEL:<o:p></o:p>FREDERICK
BOAMAH FOR PLAINTIFF<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

NO
APPEARANCE ON BEHALF OF DEFENDANTS<o:p></o:p>

</div>CORAM: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>JUSTICE
JENNIFER A. DODOO (MRS) JUSTICE OF THE HIGH COURT<o:p></o:p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt;
border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none;
padding:1.0pt 0in 1.0pt 0in">

<p class="MsoNormal" align="center" style="text-align:center;line-height:115%;
border:none;mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt:
solid windowtext 1.5pt;padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in">JUDGMENT<o:p></o:p>

</div><o:p>&nbsp;</o:p><ol style="margin-top:0in" start="1" type="1">
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l3 level1 lfo10">Interest rates&nbsp; &nbsp; CI
 52<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l3 level1 lfo10">Guarantors’ liability
 on a loan contract<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l3 level1 lfo10">The Borrower’s and
 Lender’s Act and its effect on loan contracts<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l3 level1 lfo10">Defendants’ failure
 to attend trial<o:p></o:p></li>
</ol><o:p>&nbsp;</o:p>In
a writ issued out of the Registry of this Court, the Plaintiff claimed the sum
of GH¢259,603.58 being the outstanding balance on the facility together with
interest of 4% per month compounded daily on the outstanding balance of
GH¢259,603.58 from 24th March 2015 till date of final payment.<o:p></o:p><o:p>&nbsp;</o:p>The
Plaintiff described itself in its Statement of Claim as being a private equity
company providing financial support to corporate entities.&nbsp; It stated that it had advanced to the 1st
Defendant Company a loan facility for the construction of a 6 unit classroom
block and other ancillary facilities at the Adabia Primary School. The 2nd
to 5th Defendants had offered personal guarantees towards 1st
Defendant’s repayment of the said facility.<o:p></o:p>&nbsp;<o:p></o:p>According
to the Plaintiff, the facility which was to run for 360 days at an interest
rate of 4% per month compounded daily was secured by a letter dated 7th
September 2011 from the Architectural and Engineering Services Ltd for the
issuance of joint payment certificates to enable the Defendants honour payment.<o:p></o:p><o:p>&nbsp;</o:p>It
was the Plaintiff’s case that though the initial certificate was raised in the
joint names of Plaintiff and 1st Defendant, the Defendants managed
to secure payment solely thus denying the Plaintiff of any benefit under the
certificate.&nbsp; The Plaintiff contended
that the Defendants’ conduct was fraudulent.&nbsp;
It gave the particulars of fraud as the following:<o:p></o:p><o:p>&nbsp;</o:p>a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Defendants securing the cheques for payment
in their sole names.<o:p></o:p>b)&nbsp;&nbsp;&nbsp;&nbsp;
Defendants appropriating the cheques for
their sole benefit without reference to the Plaintiff and contrary to the
investment agreement.<o:p></o:p><o:p>&nbsp;</o:p>The
Defendants filed a joint defence in which they denied receiving a facility from
the Plaintiff.&nbsp; They also stated that even
if they had received a facility from the Plaintiff, this would have been in
contravention of the Borrowers and Lenders Act, 2008 (Act 773) particularly at
section 18. <o:p></o:p><o:p>&nbsp;</o:p>The
Plaintiff in Reply contended that the denial of ever taking a facility was
dishonest and contended further that to allege illegality to the grant of the
sa</main>