Court of Appeal erred in GN Bank’s license revocation orders – Supreme Court

The Supreme Court has set aside the Court of Appeal’s decision that the High Court cannot investigate the circumstances leading to the revocation of operation license by the Bank of Ghana (BoG).

The unanimous decision of the five member-panel of the Apex Court presided over by Justice Gabriel Pwamang was that the Court of Appeal erred in making the determination.

In June 2022, the Court of Appeal ruled that the revocation of GN Bank’s license by the BoG can only be dealt with at arbitration after the High Court said it has jurisdiction.

On June 2, 2022, a three-member panel of the Court of Appeal ruled that the High Court cannot investigate the matter as filed by Dr Nduom and his legal team.

Disastified with the decision of the Court of Appeal, Dr Nduom through his lawyers led by Dr Justice Srem-Sai challenged the decision at the apex Court.

Ruling on the matter on Wednesday, July 19, 2023, Justice Pwamang’s panel which also includes Justice Mariama Owusu, Justice Omoro Amadu Tanko, Justice Barbara Ackah-Yensu and Justice Ernest Yao Gaewu held that the applicants have alternative ways of addressing their grievances including the Court.

Consequently, the apex Court ruled that the BoG is rather jumping the gun when it made the arguments that, the matter can only be dealt with at arbitration.

“It was our view that the High Court was right to dismiss the rights of jurisdiction and to investigate the complaint,” filed by Dr. Nduom and his companies.

The apex Court said, Court of appeal erred in its ruling on June 7 2022 and the “ruling of Court of Appeal is hereby set aside.”

Dr. Nduom, a businessman who doubles as the founder of the Progressive People’s Party challenged the ruling of the Court of Appeal dated June 7, 2022 that the revocation of GN Bank’s license by the BoG can only be dealt with at arbitration.

Background

On June 2, last year, a three-member panel of the Court of Appeal, unanimously upheld the Bank of Ghana’s application that the suit by Dr. Papa Kwesi Nduom, Coconut Groove Beach Resort Conference Centre Limited and Groupe Nduom against the Bank of Ghana’s revocation of the license of GN Bank be referred to Arbitration.

The Court held that per section 141 of the Banks and Specialised Deposit-Taking Institutions Act,2016, Act 930, the forum for such a challenge is arbitration and not the court.

The Court also held that Dr. Nduom and the other applicants had masqueraded their challenge to the decision of Bank of Ghana as a human rights application.

The Court, therefore, stayed the proceedings at the High Court and referred the matter to the Ghana Arbitration Centre.

But, dissatisfied with the decision of the Court of Appeal, Dr. Nduom and his lawyers led by Dr. Justice Srem Sai filed a motion at the Supreme Court to challenge that decision.

The Court of Appeal panel of three led by Justice Henry Kwoffie, also included Justice Eric Baah and Justice Novisi Ayine.