[1983]DLHC2106 • March 29, 1983 • High Court
BOUSIAKO CO., LTD. vs. GHANA COCOA MARKETING BOARD; KWABO-OSEKYERE CONSTRUCTION WORKS LTD. AND. GHANA COCOA MARKETING BOARD (CONSOLIDATED
Between 1977 and 1980, the Ghana Cocoa Marketing Board (defendants) awarded multiple contracts to the plaintiffs (Bousiako Co., Ltd. and Kwabo-Osekyere Construction Works Ltd.) for building and road projects. Due to severe inflation, contract prices became unrealistic. Plaintiffs requested adjustments for price fluctuations. On 17 June 1981, the defendants issued letters acknowledging 'exgratia awards' crediting plaintiffs' accounts with substantial sums to compensate for inflation effects. Plaintiffs relied on these letters to secure bank overdrafts. Subsequently, defendants withdrew the letters, refusing payment, leading to this suit for the awarded sums and accrued interest.
read moreJUDGMENT OF OSEI-HWERE J. The above cases were tried separately. I have decided, however, to consolidate them for the purpose of this judgment as the transaction which originated the cause of action as well as the issue for determination remain the same. For clarity, and to distinguish them on specific matters, Messrs. Bousiako Co., Ltd. will be referred to as the first plaintiffs and Kwabo-Osekyere Construction Works Ltd. will be designated as the second plaintiffs. By their amended writ of summons the first plaintiffs’ claim against the defendants is for: 1. ¢2,255,306.11 being the amount due to the plaintiffs by the Cocoa Marketing Board as a result of the effect of inflation on the original contract prices duly executed by the plaintiffs for which Cocoa Marketing Board has refused or failed to pay despite repeated demands. 2. ¢454,523.37 being the accrued interest since 17 June 1981 on the above debt on the overdraft taken by the plaintiffs from their bankers as a result of ...