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THE ROYAL LIMITED
V.
UNITED STEEL AND TRADING CO. LTD AND 2 OTHERS

(2018) JELR 64488 (HC)

High Court 28 Jun 2018 Ghana
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- Plaintiff bank granted Defendant company a credit facility consisting of a deferred letter of credit (USD $7,330,000) and a short-term loan (USD $3,665,000), with 2nd and 3rd Defendants (directors) providing personal guarantees and variou

Case Details

Suit Number:SUIT NO. CM/BFS/0866/2016
Judges:ERIC K. BAFFOUR ESQ. JUSTICE OF THE HIGH COURT
Counsel:PLAINTIFF REPRESENTED BY JANET TETTEH WAYO; COUNSEL FOR PLAINTIFF – DERRICK DELALI KUSHITOR; COUNSEL FOR DEFENDANTS – DAVID KUDOADZI

BAFFOUR, J.

Plaintiff claims the following reliefs endorsed on its writ issued against the defendant:

a. Recovery of the sum of Thirty-Four Million, Three Hundred and Seventy-One Thousand, One Hundred and Eighty –Nine Ghana Cedis and Twenty-Nine Pesewas Gh¢34,371,189.29

b. Recovery of interest on the said sum, at the contractual default compound interest rate of 42.5% per annum accruing from day to day and compounded monthly till date of final payment

c. Cost including legal fees on a full indemnity basis

d. Such further order(s) as the court may deem fit.

The factual basis for the claim of the Plaintiff can be summarized as follows: That Defendant by a board resolution resolved to request banking credit facility from the Plaintiff Bank. And by a deferred letter of credit Plaintiff granted an amount of USD$7,330,000.00 to the 1st Defendant institution for which 2nd and 3rd Defendants being directors of the 1st Defendant gave personal guarantees among other securities for the due repayment o…

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