CHANCELLOR OPPONG KYEKYEKU KOHL VS CONSOLIDATED BANK GHANA (CBG) (H1/95/2021) [2022] GHACA 156 (28 November 2022)

CHANCELLOR OPPONG KYEKYEKU KOHL VS CONSOLIDATED BANK GHANA (CBG) (H1/95/2021) [2022] GHACA 156 (28 November 2022)

The Respondent was not the proper party to be sued for the full contractual interest as the law vests all rights and liabilities of the defunct Beige Bank Ltd in the Receiver upon revocation of its licence. Statute suspends further accrual of contractual interest and mandates application of a new rate as determined by the Bank of Ghana. However, the Respondent admitted owing GH¢16,285.98 at the statutory rate, and the Appellant is entitled to this sum with interest at the prevailing commercial bank rate from the maturity date to payment.

Citation
[2022] GHACA 156
Parties
Plaintiff/appellant: Chancellor Oppong Kyekyeku Kohl; Defendant/respondent: Consolidated Bank Ghana (CBG)
Court
Court of Appeal
Jurisdiction
Ghana
Judgment Date
28 November 2022
Case Number
H1/95/2021
Procedural Posture
Civil Appeal / Judgment on Appeal From Circuit Court
Outcome
Appeal dismissed with variation
Legal Topics
Receivership, Banking Sector Clean Up, Interest Rates on Fixed Deposits, Frustration of Contract, Statutory Interpretation
Source Language
English
Banking Law Contract Law Receivership Banking Sector Clean Up Interest Rates on Fixed Deposits Frustration of Contract Statutory Interpretation

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Parties

Chancellor Oppong Kyekyeku Kohl

Plaintiff/appellant

Consolidated Bank Ghana (CBG)

Defendant/respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From Circuit Court

Legal Issues

  1. 1 Whether the Respondent was the proper party to be sued for the balance of interest on the Appellant's fixed deposit investment after the revocation of Beige Bank Ltd's licence and appointment of a receiver
  2. 2 Whether the Appellant is entitled to the claimed interest rate of 27% per annum or the reduced rate of 13% per annum after receivership
  3. 3 Whether the trial court erred in dismissing the suit against the Respondent

Ratio Decidendi

The Respondent was not the proper party to be sued for the full contractual interest as the law vests all rights and liabilities of the defunct Beige Bank Ltd in the Receiver upon revocation of its licence. Statute suspends further accrual of contractual interest and mandates application of a new rate as determined by the Bank of Ghana. However, the Respondent admitted owing GH¢16,285.98 at the statutory rate, and the Appellant is entitled to this sum with interest at the prevailing commercial bank rate from the maturity date to payment.

Court Disposition

Appeal dismissed with variation

Orders

  • Respondent to pay Appellant GH¢16,285.98 with interest at the prevailing commercial bank rate from 4th April 2019 to date of payment in full and final satisfaction of obligations under the investment agreement.
  • Judgment of the Trial Circuit Court dated 19th March, 2021 affirmed, subject to the above variation.