EXIM GUARANTY COMPANY GH. LTD. vs. BIG AIDOO CONSTRUCTION LTD., MICHAEL AIDOO AND ERIC AIDOO [2018]DLHC9270

EXIM GUARANTY COMPANY GH. LTD. vs. BIG AIDOO CONSTRUCTION LTD., MICHAEL AIDOO AN... [2018]DLHC9270

Date	2018-12-17
Suit No.	SUIT NO. CM/BFS/0848/16
Citation No.	[2018]DLHC9270

HER LADYSHIP JUSTICE JENNIFER ABENA DADZIE

GODWIN DJOKOTO ESQ. OF LEGAL ANCHOR LEGAL PRACTITIONERS AND CONSULTANTS ADJIRINGANOR ACCRA COUNSEL FOR PLAINTIFF

KWESI COLEMAN ESQ. (H/B FOR ANTHONY FORSON JNR ESQ.) OF T. FORSON & CO. OSU ACCRA COUNSEL FOR DEFENDANTS

[2018]DLHC9270
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,serif;
mso-fareast-font-family:Calibri;mso-bidi-font-family:&quot;Times New Roman&quot;;
color:#00B0F0;mso-ansi-language:EN-US">EXIM GUARANTY COMPANY GH. LTD.<o:p></o:p>(PLAINTIFF)<o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,serif;
mso-fareast-font-family:Calibri;mso-bidi-font-family:&quot;Times New Roman&quot;;
color:#00B0F0;mso-ansi-language:EN-US">vs.<o:p></o:p><span style="font-size:12.0pt;line-height:
115%;font-family:&quot;Book Antiqua&quot;,serif;mso-fareast-font-family:Calibri;
mso-bidi-font-family:&quot;Times New Roman&quot;;color:#00B0F0;mso-ansi-language:EN-US">BIG
AIDOO CONSTRUCTION LTD., MICHAEL AIDOO AND ERIC AIDOO<o:p></o:p>(DEFENDANTS)<o:p></o:p>[HIGH COURT,
(COMMERCIAL DIVISION) ACCRA]<o:p></o:p><o:p>&nbsp;</o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0cm 0cm 1.0pt 0cm">

<p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt;
text-align:center;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">SUIT NO.
CM/BFS/0848/16&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &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:
17TH DECEMBER, 2018<o:p></o:p>

</div>COUNSEL:<o:p></o:p>GODWIN DJOKOTO, ESQ., OF LEGAL ANCHOR, LEGAL
PRACTITIONERS AND CONSULTANTS, ADJIRINGANOR, ACCRA, COUNSEL 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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<p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;text-align:
justify;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">KWESI COLEMAN,
ESQ. (H/B FOR ANTHONY FORSON, JNR, ESQ.) OF T. FORSON &amp; CO., OSU, ACCRA,
COUNSEL FOR DEFENDANTS<o:p></o:p>

</div>CORAM:<o:p></o:p>HER LADYSHIP JUSTICE JENNIFER ABENA
DADZIE<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;
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<p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt;
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:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm">JUDGMENT<o:p></o:p>

</div><o:p>&nbsp;</o:p>The Plaintiff is a finance house licensed by the Bank
of Ghana to issue credit guarantees on behalf of businesses for medium to long
term credit on request. The 1st Defendant is a limited liability
company registered under the laws of Ghana carrying on the business of road
construction. The 2nd and 3rd Defendants are directors of
the 1st Defendant Company who at all material times personally
guaranteed the due repayment of sums owed by the 1st Defendant to
the Plaintiff. <o:p></o:p>I have reviewed the record of proceedings and the
evidence adduced in this case extensively.&nbsp;
Plaintiff’s case consisted of the testimony of its Representative, Mr.
Dennis Teinor, a Credit Analyst and the documentary evidence he submitted in
support of the claim of the Plaintiff, marked in the record as Exhibits
“A” through “N3”.&nbsp; On the other hand,
the Defendants’ case consisted of the testimony on oath of the 2nd
Defendant who testified on his own behalf and the behalf of the other
Defendants and the documentary evidence he produced in support of their case,
which were marked into evidence as Exhibits “1” through “15”.&nbsp; <o:p></o:p>The facts of the case as can be gleaned from the
evidence of the record is that the 1st Defendant purchased a new
complete McCloskey Track Crushing Quarry Plant (hereinafter referred to as “McCloskey Track”) on credit from E.S.M.
Company Limited (also hereinafter referred to as “ESM”) at a total cost of Two Million United States Dollars
(US$2,000,000.00) to support its operations. The 1st Defendant
agreed to make an initial payment of Two Hundred Thousand United States Dollars
(US$200,000.00) to ESM and agreed to provide a bank guarantee in favour of ESM
for the due repayment of the balance in the sum of One Million Eight Hundred
Thousand United States Dollars (US$1,800,000.00). <o:p></o:p>The Plaintiff contends that the 1st
Defendant requested for a Machinery Credit Guarantee from the Plaintiff Company
in the sum of One Million, Eight Hundred Thousand United States Dollars
(US$1,800,000.00) to ESM for the purchase of the McCloskey Track taken on
credit by the 1st Defendant.&nbsp;
Consequently, the Plaintiff issued a guarantee on behalf of the 1st
Defendant undertaking to pay an amount of One Million Eight Hundred Thousand
United States Dollars (US$ 1,800,000.00) to ESM upon default by the 1st
Defendant in the repayment of the new complete McCloskey Track, which was to
remain valid for a period of twelve (12) months from the date of issuance of
the Guarantee, and not later than January 10, 2014.&nbsp; Plaintiff tendered a copy of this Guarantee,
identified as No. GC/MC/13-004 in evidence as Exhibit “B”.&nbsp; From the Exhibit “B” the Guarantee facility was
secured with the following:<o:p></o:p><ol style="margin-top:0cm" start="1" type="a">
 <li class="MsoNormalCxSpMiddle" style="text-align:justify;line-height:115%;
 mso-list:l1 level1 lfo2"><span style="font-size:12.0pt;line-height:115%;
 font-family:&quot;Book Antiqua&quot;,serif;mso-fareast-font-family:Calibri;
 mso-bidi-font-family:&quot;Times New Roman&quot;;mso-ansi-language:EN-US">A mortgage
 over an immovable property identified as Plot No. 199, East Legon be</main>