Ofori Vrs Ecobank Ghana Limited & 2 Ors [2021] GHASC 156 (24 March 2021)

Ofori Vrs Ecobank Ghana Limited & 2 Ors [2021] GHASC 156 (24 March 2021)

The court held that the 13.34% rate is the Treasury bill rate, which by operation of CI 52 becomes the statutory rate where the prevailing bank rate is in doubt. The court clarified that post-judgment interest on GH¢6,120,240 is to be calculated at 30% compound interest from 2nd June 2008 to 25th July 2018, and thereafter at 13.34% simple interest on the sum as at 25th July 2018. The same 13.34% simple interest applies to GH¢7,600,000 from 2nd June 2008 to final payment. The application for review was dismissed as the orders were consistent with CI 52 and legislative intent.

Citation
[2021] GHASC 156
Parties
Plaintiff/appellant/applicant/respondent: Daniel Ofori; 1st Defendant/respondent/respondent/applicant: Ecobank Ghana Limited; 2nd Defendant: Securities and Exchange Commission; 3rd Defendant: Ghana Stock Exchange
Court
Supreme Court
Jurisdiction
Ghana
Judgment Date
24 March 2021
Procedural Posture
Civil Motion / Ruling on Application for Clarification and Review of Judgment
Outcome
Application for review dismissed; application for clarification granted.
Legal Topics
Interest on Judgment Debt, Interpretation of Statutory Interest Rates, Application of CI 52, Post Judgment Interest Calculation
Source Language
English
Banking Law Civil Procedure Contract Law Interest on Judgment Debt Interpretation of Statutory Interest Rates Application of CI 52 Post Judgment Interest Calculation

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Parties

Daniel Ofori

Plaintiff/appellant/applicant/respondent

Ecobank Ghana Limited

1st Defendant/respondent/respondent/applicant

Securities and Exchange Commission

2nd Defendant

Ghana Stock Exchange

3rd Defendant

Procedural Posture

Civil Motion / Ruling on Application for Clarification and Review of Judgment

Legal Issues

  1. 1 Whether the 13.34% interest rate is the statutory rate or Treasury bill rate for post-judgment interest
  2. 2 Whether interest should be calculated on the original sum or the sum as at judgment date
  3. 3 Whether the mode of calculating interest at simple interest is per incuriam CI 52

Ratio Decidendi

The court held that the 13.34% rate is the Treasury bill rate, which by operation of CI 52 becomes the statutory rate where the prevailing bank rate is in doubt. The court clarified that post-judgment interest on GH¢6,120,240 is to be calculated at 30% compound interest from 2nd June 2008 to 25th July 2018, and thereafter at 13.34% simple interest on the sum as at 25th July 2018. The same 13.34% simple interest applies to GH¢7,600,000 from 2nd June 2008 to final payment. The application for review was dismissed as the orders were consistent with CI 52 and legislative intent.

Court Disposition

Application for review dismissed; application for clarification granted.

Orders

  • Interest on GH¢6,120,240 at 30% compound interest from 2nd June 2008 to 25th July 2018, then at 13.34% simple interest on the sum as at 25th July 2018 until final payment.
  • Interest on GH¢7,600,000 at 13.34% simple interest from 2nd June 2008 until final payment.