A recent High Court ruling has attracted public attention after a judge authorised a court-appointed Receiver to take control of No. 1 Oxford Street Hotel in Osu, a property linked to businessman Nana Kwame Bediako, popularly known as Cheddar.
But what does the ruling mean, and does it mean Cheddar has lost the hotel forever? Here’s what you need to know.
What Happened?
The Commercial Division of the High Court in Accra has granted permission for the police to help a Receiver, Nii Amanor Dodoo, take possession of the hotel.
The Receiver was appointed by Cola Holdings Limited, a UK-based company that claims it is owed money secured by the property.
The Receiver told the court that attempts to take control of the hotel peacefully had failed, so he asked for police assistance.
The court agreed and issued a warrant allowing the police to assist him.
What Is a Receiver?
A Receiver is a person appointed by a lender or a court to take control of a property or business when a borrower fails to repay a loan.
The Receiver’s job is to protect the property and, if necessary, sell it or manage it so the lender can recover the money owed.
This does not automatically mean the owner has permanently lost the property.
Why Is Cola Holdings Involved?
Cola Holdings says it has a legal security interest over the hotel.
A security interest means a borrower uses property as collateral for a loan. If the loan is not repaid, the lender can take legal steps to recover the money from that property.
The court found that Cola Holdings had properly registered its security interest and had followed the legal process required under Ghana’s Borrowers and Lenders Act, 2020 (Act 1052).
Why Did the Court Allow Police Assistance?
According to the court, the Receiver had been unable to take possession of the hotel because of resistance.
Under Ghanaian law, when this happens, a lender or Receiver can apply to the court for police assistance.
Justice Samuel Faraday Johnson ruled that the legal requirements had been met and granted the request.
Did Cheddar Oppose the Application?
Yes.
The application was opposed by Kensington Residential Partners 1 Limited, a company linked to Mr. Bediako.
However, the judge ruled that the company did not provide enough evidence to prevent the Receiver from taking possession of the hotel.
Does This Mean the Entire Case Is Over?
No.
The ruling deals only with the Receiver’s request for police assistance.
It does not decide the wider dispute over the debt or ownership of the property.
Those legal issues are still before the courts.
What Is Cheddar’s Position?
Earlier this year, Mr. Bediako said he disagreed with the debt and has instructed his lawyers to challenge the enforcement of a judgment from the High Court of England and Wales.
He has also appealed an earlier High Court decision in Ghana and says he will continue to pursue all legal options available to him.
Ghana|Atinkaonline.com