Bank Of Africa Ltd Vrs Gracefield Merchants Ltd & 4 Ors [2020] GHASC 78 (5 February 2020)

Bank Of Africa Ltd Vrs Gracefield Merchants Ltd & 4 Ors [2020] GHASC 78 (5 February 2020)

The claimants were bona fide purchasers for value without notice because the mortgage was not registered at the time of their purchase, and there was no evidence of actual or constructive notice of the mortgage. The mortgage had no legal effect until registration, and the claimants' titles could not be defeated by the subsequently registered mortgage. The lower courts were correct in discharging the properties from attachment.

Citation
[2020] GHASC 78
Parties
Plaintiff/judgment Creditor/appellant/appellant: Bank of Africa Ltd; Defendant/judgment Debtor: Gracefield Merchants Ltd; Defendant/judgment Debtor: Dr. Kofi Ruben Atekpe; Defendant/judgment Debtor: Kofi Kwakwa; Claimant/respondent/respondent: Mike Twum Barimah; Claimant/respondent/respondent: Robert Allen
Court
Supreme Court
Jurisdiction
Ghana
Judgment Date
5 February 2020
Procedural Posture
Civil Appeal / Final Appellate Judgment (supreme Court)
Outcome
appeal dismissed
Legal Topics
Mortgage Registration, Bona Fide Purchaser, Interpleader Proceedings, Priority of Interests, Execution of Judgment
Source Language
English
Property Law Banking Law Civil Procedure Mortgage Registration Bona Fide Purchaser Interpleader Proceedings Priority of Interests Execution of Judgment

Case Brief

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Parties

Bank of Africa Ltd

Plaintiff/judgment Creditor/appellant/appellant

Gracefield Merchants Ltd

Defendant/judgment Debtor

Dr. Kofi Ruben Atekpe

Defendant/judgment Debtor

Kofi Kwakwa

Defendant/judgment Debtor

Mike Twum Barimah

Claimant/respondent/respondent

Robert Allen

Claimant/respondent/respondent

Procedural Posture

Civil Appeal / Final Appellate Judgment (supreme Court)

Legal Issues

  1. 1 Whether the claimants were bona fide purchasers for value without notice of the mortgage.
  2. 2 Whether the unregistered mortgage could be enforced against the claimants.
  3. 3 Whether the lower courts erred in discharging the properties from attachment.

Ratio Decidendi

The claimants were bona fide purchasers for value without notice because the mortgage was not registered at the time of their purchase, and there was no evidence of actual or constructive notice of the mortgage. The mortgage had no legal effect until registration, and the claimants' titles could not be defeated by the subsequently registered mortgage. The lower courts were correct in discharging the properties from attachment.

Court Disposition

appeal dismissed

Orders

  • Properties discharged from attachment under the writ of fieri facias.
  • Appellant to enforce judgment against original defendants only.