Accra, Dec. 20, GNA - An Accra High Court has ordered the Bank of Ghana (BoG), the Attorney-General (AG) and the Receiver of GN Savings and Loans Limited to file their defence in response to the suit by GN Savings and Loans over the revocation of its license.
The Court presided over by Justice Gifty Addo Adjei gave the three defendants one month to file their defence, saying that the case was that of fundamental human rights as enshrined in Chapter Five (5) of the 1992 Constitution and that the court has jurisdiction to go into it and adjourned proceedings to January 21, 2020.
It would be recalled that on August 16, this year, the BoG issued a notice to revoke the license of GN Savings and Loans and 22 other savings and loans companies for various reasons.
The BoG said that GN Savings and Loans Limited was currently insolvent under Section 123(4) of the Banks and SDIs Act, 2016 (Act 930) and appointed Mr Eric Nana Nipah, a partner at Price Water House Coopers Ghana, as a receiver to see to the liquidation of the companies.
However, Dr Papa Kwesi Nduom together with other shareholders of GN Savings, through their lawyers, filed an application at the High Court to challenge the revocation of GN Savings’ and Loans License on August 30, this year.
The plaintiffs herein rejected BoG’s claim that GN was insolvent, alleging that the BoG deliberately refused to consider the entire portfolio of the GN’s assets before drawing the conclusion that it was insolvent.
They also filed an application for interlocutory injunction seeking to restrain the Bank of Ghana and the Receiver from acting in a way that may overreach the court’s powers.
The respondents herein being BOG, AG and the Receiver opposed the application, arguing that the proper place to challenge the revocation was the Ghana Arbitration Centre and not the High Court.
The Court however dismissed the response of the respondents.
GNA
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