ALFA ENTERPRISES LTD. vs. PAN AFRICAN TRADING CO. AND ANOTHER [1978]DLCA1125

Date	1978-12-18
Suit No.
Citation No.	[1978]DLCA1125

JIAGGE JA

ANNAN JA

FRANCOIS J.A.

E. D. KOM FOR THE APPELLANT.

S. OKUDJETO FOR THE RESPONDENTS.

<p class="mb-5" id="contentDlCitation"  hidden>[1978]DLCA1125</p>
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size: 18px !important;"><span style="font-size: 18px !important;"><span style="font-size: 18px !important;"><span style="font-size: 18px !important;"><p class="MsoNormal" align="center" style="margin-bottom:5.0pt;text-align:center;
mso-pagination:none;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;
mso-border-shadow:yes"><b><span style="font-size:12.0pt;line-height:115%;
font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;color:#8DB3E2;mso-themecolor:text2;
mso-themetint:102">ALFA ENTERPRISES LTD. <o:p></o:p></span></b></p>

<p class="MsoNormal" align="center" style="margin-bottom:5.0pt;text-align:center;
mso-pagination:none;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;
mso-border-shadow:yes"><span style="font-size: 12pt; line-height: 115%; font-family: &quot;Book Antiqua&quot;, serif;">[COURT OF APPEAL] <o:p></o:p></span></p>

<p class="MsoNoSpacing" align="right" style="text-align:right;line-height:115%;
border:none;mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in;
mso-padding-alt:0in 0in 1.0pt 0in"><i><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;">DATE:</span></i><b><span style="font-size:12.0pt;line-height:
115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;mso-bidi-font-family:Tahoma;color:#00B0F0">
</span></b><b><span style="font-size: 12pt; line-height: 115%; font-family: &quot;Book Antiqua&quot;, serif;">18 DECEMBER 1978</span></b><u><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;"><o:p></o:p></span></u></p>

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<p class="MsoNoSpacing" style="line-height:115%"><b><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;">COUNSEL:&nbsp;&nbsp; <o:p></o:p></span></b></p>

<p class="MsoNormal" style="text-align:justify;border:none;mso-border-bottom-alt:
solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 0in 0in"><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-bidi-font-family:Tahoma">E. D. KOM FOR THE APPELLANT.<o:p></o:p></span></p>

</div>

<p class="MsoNoSpacing" style="line-height:115%"><b><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;">CORAM:
<o:p></o:p></span></b></p>

<p class="MsoNormal" style="margin-bottom:6.0pt;text-align:justify;border:none;
mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 0in 0in"><b><span style="font-size: 12pt; line-height: 115%; font-family: &quot;Book Antiqua&quot;, serif;">JIAGGE JA, ANNAN JA AND FRANCOIS J.A.<o:p></o:p></span></b></p>

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<p class="MsoNormal" style="margin-bottom:5.0pt;text-align:justify;mso-pagination:
none;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:
yes"><span style="font-size: 12pt; line-height: 115%; font-family: &quot;Book Antiqua&quot;, serif;">Jiagge
J.A. delivered the judgment of the court. The Nichenen Co., Ltd. of Tokyo,
Japan shipped 108 steel envelopes of galvanised iron sheets valued at US
$49,769.75 to Tema on the Straat Freedom, a vessel belonging to the first
defendant company. The goods were consigned on the bill of lading to Banque
Libane Francaise registered in Lebanon. The consignee endorsed the bill of
lading to the first plaintiff who in turn endorsed it to the second plaintiff
through the Standard Bank of Ghana Ltd.<o:p></o:p></span></p>

<p class="MsoNormal" style="margin-bottom:5.0pt;text-align:justify;mso-pagination:
none;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:
yes"><span style="font-size: 12pt; line-height: 115%; font-family: &quot;Book Antiqua&quot;, serif;">The
second defendant averred in his defence that he had purchased the goods from
Alfa Enterprises Ltd. The fourth defendant in his defence, denied that he ever
purchased steel envelopes of galvanised iron sheets but admitted that he
purchased 1,500 bundles of Star Brand corrugated iron sheets from the second
defendant at the cost of ¢25,560. The second defendant applied for an order for
a joinder of Alfa Enterprises Ltd. as co-defendant.<o:p></o:p></span></p>

<p class="MsoNormal" style="margin-bottom:5.0pt;text-align:justify;mso-pagination:
none;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:
yes"><span style="font-size: 12pt; line-height: 115%; font-family: &quot;Book Antiqua&quot;, serif;">Alfa
Enterprises Ltd. also applied to be joined as co-defendants. The court in
dismissing the application held that the applicants had been struck off the
register of companies, that the applicants took no action to have their names
restored on the register but formed a new company which purported to take over
the assets and liabilities of the old company. The court held further that the
new company could not properly be joined as a party to the suit because it was
not in existence when the goods were shipped and could not have any rights in
the iron sheets at that time; further that section 261 (5) of the Companies
Code, 1963 (Act 179), did not apply to the circumstances of this case.<o:p></o:p></span></p>

<p class="MsoNormal" style="margin-bottom:5.0pt;text-align:justify;mso-pagination:
none;border:none;mso-padding-alt:31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:
yes"><span style="font-size: 12pt; line-height: 115%; font-family: &quot;Book Antiqua&quot;, serif;">The
co-defendants in their defence averred that the first plaintiff was the parent
company in Lebanon of Establishment Tanios Saba &amp; Co. (Ghana) Ltd. and that
Mr. Ashkar, a manager of the first plaintiff company was also a senior manager
of Establishment Tanios Saba &amp; Co., all the orders of which were placed by
the first plaintiff and that the goods in question were shipped in execution of
an agreement between the co-defendants and Establishment Tanios Saba &amp; Co.
(Ghana) Ltd. The co-defendants therefore claimed ownership of the goods.<o:p></o:p></span></p>