TOTAL (GHANA) LTD vs. MODERN PETROLEUM LTD AND OTHERS

The plaintiff obtained judgment on admission on 19 February 1998 against the second defendant, Great African Insurance Co. Ltd., on a guarantee bond executed by the second defendant as surety for the first defendant, Modern Petroleum Ltd. Before that judgment, the second defendant had commenced third-party proceedings against the first defendant on an indemnity agreement under which the first defendant undertook to indemnify the second defendant against losses arising from the guarantee bond. Third-party judgment was later entered against the first defendant on 12 February 2001 for ¢172 million, and with interest and costs the indebtedness was said to exceed ¢529 million. When execution was pursued against House No. D/3 Residential Area, Community No. 5, Tema, Mrs. Chinebuah filed a claim under Order 57, rule 16 asserting that the property belonged to her late husband, Jonathan Kojo Chinebuah, and had been devised by will to his children and herself jointly. The opposing case was that the property had already been mortgaged on 7 March 1997 as collateral security, the mortgage was registered, and therefore any interest claimed under the will was subject to the prior mortgage. Portion of judgment: “As application to fix a reserve price for the judicial sale of the landed property House No D/3 Residential Area, Community No 5, Tema having been granted, a notice under Order 57, r 16 of LN 140A was filed by one Mrs Chinebuah claiming the said property… It was contended by counsel for the claimant that the landed property referred to was the bona fide property of one Jonathan Kojo Chinebuah deceased whose widow is the claimant… counsel for the second defendant argued… the property was mortgaged on 7 March 1997 whilst the testator Jonathan Kojo Chinebuah died on 21 April 2001…”