Ofori Vrs Ecobankghana Ltd and Others [2021] GHASC 18 (24 March 2021)

Ofori Vrs Ecobankghana Ltd and Others [2021] GHASC 18 (24 March 2021)

The court held that the 13.34% rate is the Treasury bill rate, which, in the context of CI 52, is deemed the statutory rate where there is doubt as to the prevailing bank rate. The court clarified that post-judgment interest on the invested sum is to be calculated on the amount as at the date of judgment, after applying 30% compound interest up to that date, and thereafter at 13.34% simple interest. The application for review was dismissed as the court found no error in its previous ruling, but the application for clarification was granted to correct the calculation basis for post-judgment interest.

Citation
[2021] GHASC 18
Parties
Plaintiff/appellant/applicant/respondent: Daniel Ofori; 1st Defendant/respondent/respondent/respondent: 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
Outcome
Application for review dismissed; application for clarification granted.
Legal Topics
Interest on Judgment Debts, Interpretation of Statutory Interest Rates, Post Judgment Interest Calculation, Application of CI 52
Source Language
English
Civil Procedure Banking Law Commercial Law Interest on Judgment Debts Interpretation of Statutory Interest Rates Post Judgment Interest Calculation Application of CI 52

Case Brief

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Parties

Daniel Ofori

Plaintiff/appellant/applicant/respondent

Ecobank Ghana Limited

1st Defendant/respondent/respondent/respondent

Securities and Exchange Commission

2nd Defendant

Ghana Stock Exchange

3rd Defendant

Procedural Posture

Civil Motion / Ruling on Application for Clarification and Review

Legal Issues

  1. 1 Whether the 13.34% interest rate applied post-judgment is the statutory rate or Treasury bill rate as at the date of judgment
  2. 2 Clarification of the principal sum on which post-judgment interest is to be calculated
  3. 3 Whether the court erred in describing the 13.34% rate as statutory and applying simple interest

Ratio Decidendi

The court held that the 13.34% rate is the Treasury bill rate, which, in the context of CI 52, is deemed the statutory rate where there is doubt as to the prevailing bank rate. The court clarified that post-judgment interest on the invested sum is to be calculated on the amount as at the date of judgment, after applying 30% compound interest up to that date, and thereafter at 13.34% simple interest. The application for review was dismissed as the court found no error in its previous ruling, but the application for clarification was granted to correct the calculation basis for post-judgment interest.

Court Disposition

Application for review dismissed; application for clarification granted.

Orders

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