BOST to pay around 10 million yen as judgment debt

A high court in Accra ordered the Bulk Oil Storage and Transportation (BOST) to pay a total of 9,962,118.84 to Hask Oil Company Limited in respect of accrued interest on a bank facility they contracted, so that their products were in the custody of BOST, the defendant.

This is due to BOST’s refusal to sell the applicant’s petroleum products to repay the credit facility.

The court further ordered that the interest at the rate of 30 percent per annum be the default rate charged by the facility bank on the above sum from February 28, 2011 until the date of final payment.

The court judgment handed down by Judge Emmanuel Ankamah in Tema was made available to the Ghanaian News Agency in Accra.

The plaintiff stated that in July 2013 he stored his imported petroleum products in the defendant’s storage tanks.

He said the products were funded by a credit facility from Fidelity Bank, the terms of which included, among other things, a late interest rate of 30 percent per annum and the enforcement of a lien or right. compensation on an investment in a fixed deposit with the equivalent in cedi. of $ 2 million belonging to a certain JK Horgle, the majority shareholder of the plaintiff company.

This was a case where the plaintiff did not repay the facility.

He stated that on October 27, 2014, when Fidelity Bank wrote to the Plaintiff to demand payment of the Credit Facility, the Plaintiff on October 31, through his attorneys, wrote to the Defendant and demanded payment of the value of products in circulation with interest on them.

He said they also called the Respondent’s attention to the credit facility with Fidelity Bank.

The Court said in response to their letter dated October 31 of the same year, the defendant wrote to the plaintiff on November 24, 2014, in which she acknowledged receipt but stated that she was unable to confirm the amount she owed the claimant until she terminated her Audit.

The proceeds were finally released to the plaintiff in May 2016, by the time the interest had reached the above figure for which the plaintiff brought an action.