BoG application to stop GN Saving and Loan’s case dismissed again

The Bank of Ghana’s appeal challenging the jurisdiction of the High Court to hear a suit against it has been dismissed.

The suit was filed by lawyers of the defunct GN Savings and Loans company, which has had its licence revoked by the central bank.

The central bank’s argument to stop the case at the High Court was that the only lawful forum for resolving the GN Savings and Loans concerns was the Ghana Arbitration Centre.

But in a unanimous ruling Monday, the Court of Appeal dismissed the application.

The court further directed the central bank to justify the revocation of GN Savings and Loans company.

Lead Counsel for GN Savings, Justice Srem-Sai, expressed concern about the central bank’s tactics to stall the case.

The dismissal is the second in a row for the central bank.

Earlier in December 2019, the High Court dismissed the Bank of Ghana’s application against the hearing of the case.

Background

The Presiding High Court judge, Justice Gifty Adjei-Addo, dismissed the legal objection as frivolous and without merit in December last year.

She then ordered BoG, the Attorney-General and Receiver of GN Savings to file their defences by January 17, 2020.

The BoG and the Attorney-General failed to file their defence on January 17, 2020 as directed by the court.

Rather, BoG appealed the High Court’s decision. It also filed an application at the High Court for a stay of the High Court’s proceedings pending the determination of the appeal.

Lawyers for Dr. Nduom again opposed the application for stay of proceedings, arguing that it was a mere ploy to delay the proceedings as the BoG had not demonstrated that some exceptional circumstances exist to justify a stay.

The application for stay of proceedings was accordingly dismissed as without merit.