FIDELITY BANK LTD
V.
ITAL CONSTRUCT INT LTD

(2016) JELR 107711 (HC)    
High Court  ·  SUIT NO: BFS /279/11 ·  29 Jan 2016 ·  Ghana
CORAM
JUSTICE NOVISI AFUA ARYENE (MRS.)
Core Terms Beta
defendant
plaintiff
ghana home loans
parties
housing units
obligation
supreme court
doctrine of frustration
favour of plaintiff
alusccu applicants
case of the defendant
default interest rate
fareham udc
mortgage facilities
barclays bank
business venture
case of the plaintiff
contractual obligation
contractual obligations
cross examination
defendant’s contract
defendant’s debt
exhibit a
exhibits c
facility letter
interest rate
judicial sale of defendant
justice novisi afua aryene
learned justices
main issue
meaning of the law
mortgage loan proceeds
nature of the obligation of the parties
party fails
plaintiff’s claim
plaintiff’s representative
plaintiff’s statement
plea of frustration avails defendant
said date
supervening events
terms of an agreement
terms of payment
unforeseen events

JUDGMENT 

By a facility letter dated 12th May 2008, plaintiff granted the defendant a short term loan of  US$700,000.00. The facility which was to expire on 15th April 2009 was at an interest rate of  12% per annum with a default interest rate of 13% per annum. Defendant executed a fixed  debenture in favour of plaintiff over her electro-welding panel production plant and machinery  with a forced sale value of US$1,510,425.00.  

Defendant failed to abide by the terms of payment and by a letter dated 19th of May 2010,  applied for the restructuring of the outstanding debt which at the said date stood at  US$432,538.91. Defendant again failed to comply with the payment schedule of the  restructured facility. It is the case of the plaintiff that as at 17th of June 2011, defendant’s debt  stood at US$457,671.53.  

Plaintiff’s claim is for the recovery of said outstanding amount plus interest at the rate of 13%  per annum from 17th June 2011 till date of final payment and the judicial sa…

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