GROFIN AFRICAN FUND (GH) LTD. AND HOPE CAPITAL LIMITED vs. COLLBOY ENTERPRISES LTD., PAUL AGYEMAN DUAH AND GRACE AGYEMAN DUAH [2020]DLCA10034

GROFIN AFRICAN FUND (GH) LTD. AND HOPE CAPITAL LIMITED vs. COLLBOY ENTERPRISES... [2020]DLCA10034

Date	2020-02-20
Suit No.	CIVIL APPEAL NO.: H1/126/19
Citation No.	[2020]DLCA10034

B. F. ACKAH-YENSU JA (PRESIDING)

H. KWOFIE JA

N. C. A. AGBEVOR JA

SEAN POKU FOR APPLICANTS/RESPONDENT

KWAME BOAFO FOR RESPONDENTS/APPELLANTS

[2020]DLCA10034
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													<main id="main" class="content" style="min-height: 60rem" >IN THE MATTER OF THE
BORROWERS AND LENDERS ACT, 2008 (ACT 773)<o:p></o:p>AND<o:p></o:p>IN THE MATTER OF A DEED OF
MORTGAGE DATED 23RD MAY, 2012<o:p></o:p>BETWEEN<o:p></o:p>PAUL AGYEMAN DUAH &amp;
GRACE AGYEMAN DUAH AND GROFIN AFRICA FUND (GH) LIMITED<o:p></o:p>BETWEEN<o:p></o:p>GROFIN AFRICAN
FUND (GH) LTD. AND HOPE CAPITAL LIMITED<o:p></o:p>(APPLICANT/RESPONDENT)<o:p></o:p>vs.<o:p></o:p>COLLBOY ENTERPRISES LTD.,
PAUL AGYEMAN DUAH AND GRACE AGYEMAN DUAH<o:p></o:p>(1STRESP/APPELLANT/2ND
RESP/APPELLANT/3RD RESP/APPELLANT)<o:p></o:p>[COURT
OF APPEAL, ACCRA]<o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: windowtext; padding: 0cm 0cm 1pt;">

CIVIL APPEAL NO.: H1/126/19&nbsp; &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:20TH FEBRUARY,
2020<o:p></o:p>

</div>COUNSEL<o:p></o:p>SEAN POKU FOR APPLICANTS/RESPONDENT<o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: windowtext; padding: 0cm 0cm 1pt;">

KWAME BOAFO FOR RESPONDENTS/APPELLANTS<o:p></o:p>

</div>CORAM&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>B.
F. ACKAH-YENSU JA (PRESIDING), H. KWOFIE JA, N. C. A. AGBEVOR JA<o:p></o:p><div style="border-top-width: 1.5pt; border-top-color: windowtext; border-left: none; border-bottom-width: 1.5pt; border-bottom-color: windowtext; border-right: none; padding: 1pt 0cm;">

<p class="MsoNormalCxSpMiddle" 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:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm">JUDGMENT<o:p></o:p>

</div>&nbsp;B. ACKAH-YENSU, JA&nbsp; <o:p></o:p>INTRODUCTION<o:p></o:p>This
appeal basically calls for a determination as to whether or not the trial Judge
was right in his interpretation of the purpose of the Borrowers and Lenders
Act, 2008 (Act 773).&nbsp; The appeal is
against the judgment of the High Court (Commercial Division), Accra, delivered
on 9th May 2018, in which the court below entered judgment in favour
of the Applicant/Respondent herein. In the said judgment, the trial Court
ordered that the Applicant/Respondent take possession of the property No. 67
(Sector F), Gbawe, North Accra, pursuant to the said Act 773.&nbsp; We shall, in this judgment refer to the
Applicant/Respondent simply as “Respondent”, and the 1st, 2nd
and 3rd Respondents/Appellants simply as “1st, 2nd
and 3rd Appellants”.<o:p></o:p>&nbsp;BACKGROUND
FACTS<o:p></o:p>On
or about the 14th of May 2012, 1st Appellant applied for and
was granted a term loan to augment its working capital in the sum of
GH¢215,000.00 at an agreed interest rate of 24.25% per annum for a term of five
(6) years.&nbsp; The facility was guaranteed
by the 2nd and 3rd Appellants who are also directors and shareholders
of the 1st Appellant Company.&nbsp;
As additional security, the 2nd and 3rd Appellants
provided legal mortgage in respect of a parcel of land lying and situate at
Gbawe North, Accra known as Plot No. 67 (Sector F) with Land Title Certificate
Number GA 29196, Volume 89 Folio 171, which is the subject matter of the
application.&nbsp; Pursuant to the provisions
of the Borrowers and Lenders Act, 2008 (Act 773), the Respondent had the collateral
security registered at the Collateral Registry of the Bank of Ghana.<o:p></o:p>&nbsp;According
to the Respondent, the Appellants failed, refused and/or neglected to perform
their financial obligations to Respondent even after numerous demands were served
on them.&nbsp; In compliance with section 32
of Act 773, the Respondent instituted an action by Originating Notice of Motion
which sought an Order for a warrant to realize and/or take possession of the
property aforementioned, after obtaining a copy of Memorandum of No Objection
from the Collateral Registry.<o:p></o:p>&nbsp;The
gravamen of Appellants’ opposition to the application was that even though the
facility was taken as one, it was disbursed in two tranches with the first
tranche reaching its suppliers and the second one not reaching its
suppliers.&nbsp; For this reason Appellants
are claiming to be indebted to the Respondent only for the first tranche
disbursed, which at all times material to the application they have been
paying.&nbsp; Therefore the Appellants contend
that they are not indebted to the Respondent at all.<o:p></o:p>&nbsp;On
the day the Parties appeared before the trial Court for the Respondent to move
its application, the trial Court ordered that each party address it by filing
written arguments in respect of their various positions to enable it deliver a
ruling on the matter.&nbsp; The Court below subsequently
granted the application.&nbsp; It is against
this judgment granting Respondent’s application that the instant appeal has
been brought.<o:p></o:p>&nbsp;</</main>