BCM GHANA LTD vs. ASHANTI GOLDFIELDS LTD [2006]DLSC6153

Date	2006-05-24
Suit No.	CIVIL APPEAL NO.J4/17/2005
Citation No.	[2006]DLSC6153

ATUGUBA J.S.C. (PRESIDING)

MRS. WOOD J.S.C.

DR. TWUM J.S.C.

ANINAKWAH J.S.C.

MRS. ADINYIRA J.S.C.

MR. ATTA AKYEA FOR THE APPELLANT.

MR. KIZITO BEYUO FOR THE RESPONDENT

[2006]DLSC6153
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													<main id="main" class="content" style="min-height: 60rem" >BCM GHANA
LTD <o:p></o:p>(DEFENDANT/APPELLANT/RESPONDENT)<o:p></o:p>vs.<o:p></o:p>ASHANTI GOLDFIELDS LTD <o:p></o:p>(PLAINTIFF
/APPELLANT)<o:p></o:p>[SUPREME COURT, ACCRA]<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">

CIVIL APPEAL NO.J4/17/2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;DATE: 24TH MAY 2006<o:p></o:p>

MR.
KIZITO BEYUO FOR THE RESPONDENT.<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 1.0pt 0in">

<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;line-height:
115%;mso-layout-grid-align:none;text-autospace:none;border:none;mso-border-bottom-alt:
solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">ATUGUBA
J.S.C. (PRESIDING), MRS. WOOD J.S.C., DR. TWUM J.S.C., ANINAKWAH J.S.C., MRS.
ADINYIRA J.S.C.<o:p></o:p>

</div><o:p>&nbsp;</o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

<p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt;
text-align:center;line-height:115%;mso-layout-grid-align:none;text-autospace:
none;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in;
mso-padding-alt:0in 0in 1.0pt 0in">JUDGMENT<o:p></o:p>

</div>ATUGUBA, J.S.C. <o:p></o:p>By
an agreement dated 25th July 1997 the Appellant was engaged by the Respondent
to carry out mining operations at the Respondent's mine. The contract provided
for adjustments in the payment of contract works proportionate to changes in
the cost of operations of the appellant. This arrangement is termed "Rise-and-Fall". The contract
also provided a system of dispute resolution, the relevant parts of which are
as follows: <o:p></o:p>"3.25 ARBITRATION <o:p></o:p>3.25.1
Dispute If any difference or dispute arises between the Parties in relation to
or in connection with this Agreement or its construction or in relation to or
in connection with the Works or the performance thereof, either party may by
notice in writing to the other Party call for the point or points at issue to
be formally resolved by the Parties. Both Parties shall, as soon as reasonably
practical submit in writing to the other Party details clearly specifying the
nature of such question, difference or dispute and call for the point or points
at issue to be formally resolved within twenty-eight days (28 days) after
written submissions are received by each Party. <o:p></o:p>3.25.2
Arbitration <o:p></o:p>If
the dispute cannot be resolved by the Parties to their mutual satisfaction
within the twenty-eight days (28 days) as stated in Clause 3.25.1, that
difference or dispute may be referred to arbitration as hereinafter provided. x
x x x x x x x x x x x x x x x <o:p></o:p>3.25.5
Decision <o:p></o:p>The
decision of the arbitrator pursuant to the terms of this Clause shall be final
and binding on the Parties and no Party or Parties shall be entitled to
commence or maintain any action or proceedings until the dispute, question or
difference has been referred to and considered in accordance with the terms of
this Clause."<o:p></o:p>On
the 3rd day of July 2003 the appellant issued a writ against the respondent
claiming: <o:p></o:p>"(i) A declaration that in terms
of the contract agreed upon and duly executed by the Plaintiff and the
Defendant on the 25th day of July 1997, the Plaintiff is entitled to rise and
fall claims as defined in clause 3:21 thereof ; <o:p></o:p>(ii) A further declaration that by the
Defendant's own past performance in making good the rise and fall claims.sic It
is estopped from denying, refusing and/or neglecting to pay in full all rise
and fall claims due the Plaintiff from the defendant. <o:p></o:p>(iii) An order compelling the
Defendant to pay in full all rise and fall claims due and owed the Plaintiff
from the Defendant as determined by the court. <o:p></o:p>(iv) Interest at the current
commercial rate on the amounts so determined by the court from the date they
fell due to the date of judgment. <o:p></o:p>