[2023]DLHC16848 • June 27, 2023 • High Court
ASPECO CORP vs. EUROPA PEE CO. LTD & ANOR
The Applicant, ASPECO CORP, entered into a Sale and Purchase Agreement dated 6 July 2022 with the 1st Respondent, EUROPA PEE CO. LTD, for the purchase of 4 kg of gold. The 2nd Respondent, alleged to be the alter ego of the 1st Respondent, represented the 1st Respondent in dealings. The Applicant paid USD 180,000 into the 1st Respondent's Zenith Bank account as the purchase price. Despite receipt of payment, the Respondents failed to deliver the gold by the agreed date (25 July 2022). The Applicant initiated arbitration proceedings to recover the funds, fearing the 2nd Respondent might divert the funds to avoid payment. The Respondents admitted receipt but claimed the funds were used to pay local suppliers to fulfill obligations under the contract.
read moreJUDGMENT Introduction This Originating Motion for Preservation of Funds filed pursuant to Section 39 of the Alternative Dispute Resolution Act, 2010 (Act 798) could have been disposed of much earlier, but for a series of interlocutory matters that this Court had to deal with. The first was a preliminary objection raised by the Respondents/Respondents (Respondents) to the jurisdiction of this Court among other grounds. The second was an Application filed by the Claimant/ Applicant (Applicant) for the production of certain Bank Statements by the Respondents . As is apparent from the record, these matters occasioned a number of adjournments which were further compounded by the failure or refusal of the Respondents to comply with timelines given them for the production of the said Bank Statements. Having now been furnished with the needed information, I think the coast is now clear for the Court to delve into the substance of the Application. Facts By its Motion filed on the...