COMMODORE vs. FRUIT SUPPLY (GHANA) LTD. [1977]DLCA1304

Date	1977-06-30
Suit No.
Citation No.	[1977]DLCA1304

LASSEY JA

JIAGGE JA

KINGSLEY-NYINAH J.A.

NELSON-COFIE FOR THE APPELLANT.

U. V. CAMPBELL FOR THE RESPONDENTS.

[1977]DLCA1304
																																						<div class="restriction-wrapper">
														<div class="container-lg">
															<div class="row">
																<div class="col-md-12 restricted-content">
																	<div class="restricted-content-img-wrapper">
																		<div class="lock-icon bounce-7">
																			<img class=""
																				src="https://www.dennislawgh.com/dl-assets/dl-images/lock-content.png"
																				alt="Subscription based content">
																		</div>
																	</div>
																	 
																		<a href="https://www.dennislawgh.com/login"
																		class="btn btn-primary btn-lg"
																		style="font-family: 'open sans'; text-transform: capitalize; border-radius: 8px"> 
																		Login to Read Full Case </a>
																	 
																	
																</div>
															</div>
														</div>
													</div>
													<main id="main" class="content" style="min-height: 60rem" >COMMODORE <o:p></o:p>vs. <o:p></o:p>FRUIT SUPPLY (GHANA) LTD. <o:p></o:p>[COURT OF APPEAL, ACCRA]<o:p></o:p>[1977] 1 GLR 241<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

DATE:
30 JULY 1973<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

NELSON-COFIE FOR THE APPELLANT.<o:p></o:p>

U. V. CAMPBELL FOR THE RESPONDENTS.<o:p></o:p>

</div>CORAM:
<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

LASSEY, JIAGGE AND KINGSLEY-NYINAH
JJ.A.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF LASSEY J.A.<o:p></o:p>The
appeal was against the decision of the High Court, Accra, which allowed a claim
for a liquidated sum of money by the plaintiffs and dismissed the defendant’s
counterclaim. There was a dispute over the payment by the defendant of an
alleged debt against her which arose from a business transaction with the
plaintiff-company.<o:p></o:p><o:p>&nbsp;</o:p>The
essential features of the dispute may be stated briefly: In or about 1967, a
limited liability company (hereinafter called the company) was incorporated and
styled “Fruit Supply (Ghana) Ltd.” One Edward Ramia and a Mrs. Wadad Ramia were
the sole directors. The company was formed for the purpose of trading in frozen
fish and other miscellaneous manufactured provisions which were imported.<o:p></o:p><o:p>&nbsp;</o:p>At all
material times, Edward Ramia was the company’s chairman and managing director
who ran the company. Closely associated with him in managing the affairs of the
company is a man named Attoh Quarshie. Attoh Quarshie actively applied himself
in building up the company as a going concern. He was not appointed a director,
but was allowed to act as a de facto director and chief executive in promoting
business for the company.<o:p></o:p><o:p>&nbsp;</o:p>For the
company to carry out its objects, it was necessary that it should apply to be
registered as an importer, and also possess an import licence to enable it to
indent for frozen fish from abroad. To satisfy these requirements, the
company’s managing director, Edward Ramia, sought the assistance of Attoh
Quarshie, and requested him to arrange for the company to be registered as an
importer and procure for it the required import licence. Attoh Quarshie
undertook to get through these formalities on behalf of the company and
succeeded.<o:p></o:p><o:p>&nbsp;</o:p>The
company was granted import licence. It next set about to open letters of credit
to do business. This exercise involved finding cash and depositing the same in
a bank by the company. The amount which must be in local currency should be
equivalent to the value of the orders which the company wished to place from
abroad. The capital sum needed in this case was N¢20,000.00, and with the
payment of this sum, consignments of frozen fish could be shipped to the order
of the company in Ghana.<o:p></o:p><o:p>&nbsp;</o:p>The
company at the outset appeared not to have been financially sound. It was not
wealthy, and so was not in a position to inject the amount required into the
business. It therefore decided to raise that sum by borrowing. The managing
director consequently fell on Attoh Quarshie to help find the bulk of the money
needed for the company’s business. Attoh Quarshie in turn asked the defendant
for the financial assistance which the company urgently needed to start its
business.<o:p></o:p><o:p>&nbsp;</o:p>The
defendant was willing and ready to help provide all the money needed. Her
intention, as it turned out, was that she should be given deliveries of all the
frozen fish by the company to sell and make profit. The defendant laid out the
whole of the money required for the purposes of the company, and with that
amount the company was able to open letters of credit and did business. The arrangement
for repayment by the company of the sum advanced by the defendant was that
after the defendant had recouped herself from the proceeds of sales of the fish
entrusted to her by the company to the equivalent of the sum she lent, she was
to continue to receive cartons of frozen fi</main>