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Business News Tue, 26 May 2020

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Unicredit case: BoG application for stay of proceedings dismissed

The Human Rights Division of the Accra High Court presided over by Justice Gifty Agyei Addo has dismissed an application by the Bank of Ghana (BoG) seeking to halt proceedings in a case initiated against it by HODA Holdings.

The BoG was challenging the decision of the High Court that dismissed their claim earlier that the High Court lacked jurisdiction to hear the action instituted by HODA Holdings, challenging the revocation of the license of one of its subsidiary companies, Unicredit Savings and loans.

The dismissal of this application has paved the way For the hearing of the substantive case filed by HODA Holdings.

The court in view of that has directed the BoG who are yet to file their statement of case and response to the substantive matter 14 days to file.

Kasapa FM’s Court Correspondent Muntalla Inusah reports that hearing of the substantive case has been adjourned to June 23, 2020.

In the ruling of the court on Tuesday, it said the application is dismissed because the applicant (BoG) has not demonstrated the irreparable damage it will suffer should the respondent (applicant) HODA Holdings succeeds.

Subject matter

It would be recalled that in October last year the High Court dismissed an application by lawyer of the BoG, Frank Davies, seeking to strike out a case filed by UniCredit challenging the revocation of its license.

The High Court in its ruling indicated that its jurisdiction has been properly invoked in the matter and subsequently ordered the Bank of Ghana, to file a response to the application brought by the owners of Unicredit Savings and loans.

The Court also awarded a cost of GH¢3000 against the Bank of Ghana to be paid to Unicredit savings and loans and another GH¢2,000.00.

Bank of Ghana being dissatisfied with the ruling of the High Court proceeded upstairs to the Court of Appeal to quash the High Court ruling because the central bank believes the matter should have been handled at an arbitration level before proceeding to court.

Background

The mother company of Unicredit Savings and Loans Company – Hoda Holdings Limited in August 2019 sued Dr Ernest Addison and the Bank of Ghana for revoking the license of the company.

In the company’s affidavit filed at the Human Rights Division of the High Court, HODA Holdings said its funds of over GHS 54 million were locked up with Unibank before it was forced to cease operations by the central bank in 2018 and it has since been trying to retrieve it.

Hoda Holdings wants “An Order of Certiorari directed at the 1st and 2nd Respondents to bring up to this Honourable Court for the purpose of being Quashed the Notice Dated the 15th day of August 2019 declaring Unicredit Ghana Limited insolvent and revoking the license of Unicredit Ghana Limited to operate as a Specialized Deposit-taking Institution.

An Order of Interlocutory Injunction restraining the Respondents, their agents, assigns, privies hirelings or otherwise howsoever described from interfering with the Operations of Unicredit Ghana Limited and to refer the Subject matter of the Instant Application to Arbitration.”

Source: Kasapa FM

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