AFRICAN EUROPEAN TEXTILES LIMITED V. GHANA COMMERCIAL BANK LTD.

JUDGMENT

KWAMINA BAIDEN, JA:

This appeal arose out of an application made by the Applicant/Respondent/Respondent hereafter referred to as the Respondent against the Respondent/Applicant/Appellant hereafter referred to as the Appellant for the disbursement of money under a credit facility with the Appellant Bank.

The Respondent secured a medium-Term loan of USD1,180,899.95 from the Appellant Bank for the completion of a spinning factory, interior design and purchase of auxiliary equipment. The term of the loan was 60 months.

There was also a revolving short-term loan of USD333,251.57 granted to augment the working capital of the Respondent company. This was for a 12- month duration.

The goal of the Respondent Company in securing the loans was that it was part of the then flagship programme of the government namely the One District One Factory (1D1F) Programme and it required the loan to meet the conditions of the government’s industrialization policy under the programme.

The Respondent Compa…