An Accra High Court has set 26th September to give judgment on whether it has jurisdiction on the matter brought before it by owners of Unicredit savings and loans.

Lead Counsel for the Bank of Ghana, Frank Davies is praying the court to quash a matter brought before it by Unicredit which seeks to reverse the actions by the central bank to revoke the licenses of the firm and to declare it insolvent.

According to the lawyers for the Bank of Ghana (BoG), the matter should have been handled at an arbitration level before proceeding to court.

However, the lawyer for the Unicredit savings and loans argued that there is a breach of natural justice in the action taken by the bank of Ghana.

The high court judge, Justice George Komsoon has set 26th September to rule on whether the jurisdiction was proper or not.

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.”

In a related development, Lawyers for the Receiver of the Savings and loans companies have objected to an application served by Groupe Nduom.

This follows a directive by the court last week to properly serve the receiver in the case filed to terminate the liquidation process for GN savings and loans.

The court has therefore adjourned to 26 to begin hearing from both sides.

Meanwhile, the Attorney General has filed a response to the application filed by Groupe Nduom.

Source: Myjoyonline.com