[2016]DLCA8553February 29, 2016Court of Appeal

WEBB BUILDERS LIMITED vs. TOLON – KUMBUNGU DISTRICT ASSEMBLY AND ATTORNEY-GENERAL’S DEPARTMENT

The Plaintiff, Webb Builders Limited, executed road works for the Tolon-Kumbungu District Assembly and claimed payment of GH₵40,334.00 plus interest and damages for breach of contract. After demands for payment were refused, the Plaintiff served a demand notice and subsequently instituted a suit against the District Assembly and the Attorney-General's Department. The Defendants admitted the debt but stated payment depended on receipt of funds from the Common Fund Administrator. Judgment was entered against the Defendants on admission. The Defendants later applied to set aside the judgment on grounds including non-compliance with statutory notice requirements under Section 127(1) of the Local Government Act, 1993 (Act 462).

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ADJEI, J.A: The 1st Defendant/Appellant dissatisfied with the ruling delivered by the High Court Tamale which refused to set aside the judgment on admission obtained against it by the plaintiff on 11th November, 2011 appealed to this Court to reverse the decision of the High Court. For the purposes of this appeal, the parties would maintain their designations used at the trial Court. The Plaintiff/Respondent would be referred to as the Plaintiff and the 1st Defendant/Appellant as 1st Defendant. The Plaintiff instituted the action which culmunated in this appeal at the High Court Tamale claiming against the Defendants, inter alia the sum of GH₵40,334.00 and the interest thereon being an amount certified for payment by payment certificate No.1 dated 28th June, 2008 for works executed on reshaping of Cheshegu-Nyankpala and another 22.85 Km Feeder Road which were executed by the Plaintiff. Apart from the interest payable at the current bank rate from 28th June, 2008 to the date of Judg.....