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General News Wed, 13 May 2020

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Unicredit case: Ruling on stay of proceedings application set for May 26

The Human Rights High Court presided over by Justice Gifty Agyei Addo will on May 26 2020, deliver a ruling on an application by the Bank of Ghana seeking to halt proceedings of the case at the High Court.

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

The High Court in October last year dismissed an application by lawyer of the Bank of Ghana, 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¢2000.00.

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.

Today in Court, the presiding judge held the sitting in her chambers and has adjourned sitting to the 26thof May 2020 for her ruling.

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 on Monday, 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: Starr FM

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