The Supreme Court has ruled that the High Court has the authority to investigate the revocation of licenses of banks and specialized deposit-taking institutions (SDIs) by the Bank of Ghana (BoG), especially in cases involving alleged breaches of fundamental human rights.
The court’s decision was based on the understanding that Section 141 of the Banks and SDI Act, 2016 (Act 930), which stipulates arbitration as the means of seeking redress for those aggrieved by the BoG’s license revocation, does not exclude the High Court’s jurisdiction to assess the propriety of such revocations.
In a unanimous decision, a five-member panel of the apex court overturned the ruling by the Court of Appeal, which had upheld that an arbitration tribunal, not the High Court, was the appropriate venue for seeking redress against BoG’s license revocation.
The appeal was brought by Dr. Papa Kwesi Nduom, the Founder of the now-defunct GN Savings and Loans, who challenged the revocation of GN’s license by the BoG in 2019.
Dr. Nduom and two affiliated entities approached the High Court with a human rights application, arguing that the license revocation was unfair and unreasonable, violating their right to administrative justice as guaranteed under Article 23 of the 1992 Constitution.
The BoG objected to the jurisdiction of the High Court, citing Section 141 of Act 930 as the provision that mandated arbitration as the proper venue for seeking redress against license revocation by the central bank.
However, the High Court dismissed the objection, leading the BoG to appeal the decision at the Court of Appeal.
On June 2, 2022, the Court of Appeal, in a unanimous decision, ruled in favor of the BoG, holding that the High Court lacked jurisdiction to entertain the case due to the explicit provision of arbitration as the means of seeking redress under Section 141 of Act 930.
The Court of Appeal halted the proceedings at the High Court and referred the dispute to the Ghana Arbitration Centre.
Dissatisfied with this outcome, Dr. Nduom appealed to the Supreme Court, which eventually ruled in his favor, upholding the jurisdiction of the High Court to inquire into the matter of BoG’s license revocation.