BOND SAVINGS & LOANS LIMITED. (PLAINTIFF) vs. IREDEI ENTERPRISE LTD, IRENE ODEI AND PAUL ODEI (DEFENDANTS) [2019]DLHC7123

BOND SAVINGS & LOANS LIMITED. (PLAINTIFF) vs. IREDEI ENTERPRISE LTD, IRENE ODEI... [2019]DLHC7123

Date	2019-05-31
Suit No.	SUIT NO: CM/ RPC/0391/17
Citation No.	[2019]DLHC7123

HIS LORDSHIP SAMUEL K. A. ASIEDU J

AKYERE ASUA KWASI. ESQ.

FOR B.O. AGYEKUM ESQ.

FOR PLAINTIFF.

[2019]DLHC7123
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													<main id="main" class="content" style="min-height: 60rem" >BOND SAVINGS &amp; LOANS
LIMITED.<o:p></o:p>(PLAINTIFF)<o:p></o:p>vs.<o:p></o:p>IREDEI ENTERPRISE LTD, IRENE ODEI AND PAUL ODEI<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;
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SUIT
NO: CM/ RPC/0391/17 &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;DATE: 31ST
MAY, 2019<o:p></o:p>

</div>COUNSEL: <o:p></o:p>AKYERE ASUA KWASI.&nbsp; ESQ., FOR B.O. AGYEKUM ESQ., 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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KWASI
AUSTINE ESQ., FOR THE DEFENDANTS.<o:p></o:p>

</div>CORAM:<o:p></o:p>HIS LORDSHIP SAMUEL K. A.
ASIEDU, J <o:p></o:p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt;
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<p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt;
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</div>The
plaintiff claims, per its writ of summons, against the defendants jointly and
severally:<o:p></o:p>a. Recovery of the sum of GH¢619,294.12 being
Defendants’ indebtedness to Plaintiff as of 31st May, 2017.<o:p></o:p>b. Interest on the said GH¢619,294.12 at the rate
of 38% per annum from 1st June, 2017 till date of final payment.<o:p></o:p>Per
their statement of defence, the defendants deny the plaintiff’s claim. After
the inability of the parties to settle the matter at pre-trial, issues were set
down for determination by the court. At the trial, the defendants elected not
to call or give evidence at all and so, after evidence has been given by the
plaintiff’s representative and cross examined by counsel for the defendants the
matter was adjourned for judgment.<o:p></o:p>From
the evidence on record, particularly exhibit ‘A’, the court finds that on the
28th November 2013, the plaintiff advanced a facility in the sum of
GH₵170,000.00 to the 1st defendant. This
facility was advanced to the 1st defendant on condition that an
earlier facility granted the 1st defendant with an outstanding
balance of GH₵184,465.10
as at the November 28, 2013 was completely paid off before
disbursement could begin. The court finds also that the facility advanced to
the 1st defendant was for a term of twelve (12) months to expire on
the 30th day of November, 2014. <o:p></o:p>There
is also evidence to the effect that the agreed rate of interest on the facility
was 38% per annum calculated at simple interest. It has been submitted on
behalf of the defendants that the Pre-Agreement Truth in Lending Disclosure,
exhibit ‘F’ that was furnished the defendants quoted the rate of 37% per annum
as the cost of credit and therefore the plaintiff cannot charge the defendant
interest rate of 38% per annum on the facility granted the defendants. Indeed section
18 (1) (2) of the Borrowers and Lenders Act, 2008, Act 773 requires the
plaintiff to provide a pre-agreement statement and quotation to the defendants
before concluding any credit transaction arrangements with the defendants. The
section provides that:<o:p></o:p>18.&nbsp;&nbsp;&nbsp;Pre-agreement disclosure <o:p></o:p>(1)&nbsp;&nbsp;A lender shall not conclude a credit
agreement with a prospective borrower unless the lender provides the
prospective borrower with a pre-agreement statement and quotation in the form
specified in the Schedule.<o:p></o:p>(2)&nbsp;&nbsp;A pre-agreement statement shall
specify<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the
principal amount;<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the
proposed disbursement schedule of the principal debt;<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the
interest rate;<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; other
credit costs;<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the
total amount involved in the proposed agreement,<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the
proposed repaym</main>