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File photo: Gavel

An Accra High Court Thursday dismissed Bank of Ghana’s (BoG’s) application seeking to strike out a case filed by UniCredit challenging the revocation of its license.

The Judge, George Komson ruled that the jurisdiction of the high court has been properly invoked in the matter. 

The Judge, therefore, gave the Lawyer for the Bank of Ghana, Frank Davies three days to file a response to the application brought by the owners of Unicredit Savings and loans.

The court awarded a cost of GH¢3000 against the Bank of Ghana to be paid to Unicredit savings and loans and another GH¢2000 to be paid to CDH savings and loans. 

The case has been adjourned to 17 October 2019.

Earlier, the Lead Counsel for the Bank of Ghana, Frank Davies prayed 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 Court, , therefore, set 26th September to give judgment on whether it has jurisdiction on the matter. 

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: JoyBusiness