This suit arose from a credit transaction between the Plaintiff Bank and the Defendants herein who operate a hostel facility in Mampong, Ashanti. Specifically, the 2nd Defendant is a Director and sole shareholder of the 1st Defendant Company and a personal guarantor under the loan agreement.
The endorsement on the writ of summons is as follows:
a) Recovery of the sum of Thirty-Six Thousand Five hundred and Fifty Ghana Cedis Seventeen Pesewas (GH¢36, 550.17) being outstanding balance of a loan facility granted to the 1st Defendant by the Plaintiff.
b) Interest at the prevailing bank rate from 1st November, 2011 till date of final payment.
c) Penal interest of 10% per annum from 1st November, 2011 till date of final payment.
The plaintiff’s case was that the 1st Defendant applied for a loan facility of GH¢ 30,000.00 for a twelve month period to enable it complete the ground floor of its Hostel facility. The said facility was approved on 10/07/2006 upon terms. First, it attracted inte…