The legal battle over the revocation of GN Savings and Loans’ licence is heading to the Supreme Court after the Bank of Ghana formally moved to challenge the recent Court of Appeal ruling in favour of Groupe Nduom.
According to Joy Business, court documents show that the central bank has filed an appeal asking the Supreme Court to overturn the appellate court’s decision that ordered the restoration of GN Savings and Loans’ licence.
In its filing, the Bank of Ghana argues that the Court of Appeal made a legal error when it proceeded “to hear and determine the appeal filed by applicants to the Court of Appeal” involving Dr. Papa Kwesi Nduom, Coconut Grove Beach Resort, and Group Nduom Limited.
The central bank further contends that the applicants failed to satisfy a mandatory requirement under the court’s Rules, 1997 (CI 19, as amended), which demands that specific particulars of alleged legal errors be clearly outlined in a notice of appeal.
Another major issue raised by the Bank of Ghana relates to the Court of Appeal’s position that the central bank should have taken into account the findings of the advisor it appointed before revoking the licence of GN Savings and Loans.
According to the application, the Bank of Ghana identified what it described as several “particulars of error in law” that justify setting aside the appellate court’s judgment.
The central bank is therefore seeking an order from the Supreme Court to reverse the Court of Appeal ruling, uphold the earlier High Court judgment, and dismiss the case brought by Group Nduom Limited and its chairman, Dr. Papa Kwesi Nduom.
Earlier this week, the Bank of Ghana indicated that it was waiting for legal guidance from its external lawyers and the receiver of the collapsed financial institution before determining its next step.
However, information gathered by JOY BUSINESS suggests the central bank has now acted on that legal advice by proceeding to the Supreme Court.
The Court of Appeal had, in a unanimous ruling delivered by a panel made up of Justice Jerome Noble Nkrumah, Justice Francis Achibonga, and Justice Mariama Sammo, ordered that GN Savings and Loans Company Limited’s licence be restored.
That ruling overturned the earlier High Court decision which had upheld the Bank of Ghana’s revocation of the company’s operating licence.
The appellate court also instructed the receiver, Eric Nana Nipah, to return control, management, and possession of the company’s assets and operations to Groupe Nduom, the shareholder linked to Dr. Papa Kwesi Nduom.
GN Bank Limited was reclassified as GN Savings and Loans Company Limited on January 4, 2019, following regulatory changes.
Months later, on August 16, 2019, the Bank of Ghana revoked the company’s licence and appointed a receiver as part of the financial sector clean-up exercise, prompting legal action from Groupe Nduom challenging the decision.
