[2010]DLCA4473 Login to Read Full Case <span style="font-size: 18px !important;"><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">AKWASS FARMS LTD<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><i><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(APPLICANT/RESPONDENT)<o:p></o:p></span></i></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">vs.<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">GHANA TELECOM CO. LTD<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><i><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(RESPONDENT/ APPELLANT)<o:p></o:p></span></i></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"">[COURT OF APPEAL, ACCRA]<o:p></o:p></span></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="text-align:center;line-height:115%; border:none;mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in; mso-padding-alt:0in 0in 1.0pt 0in"><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">SUIT NO. HI/30/2010 DATE: 3rd FEBRUARY, 2010<o:p></o:p></span></p> </div><p class="MsoNormal" style="text-align:justify;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">COUNSEL:<o:p></o:p></span></b></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">MR. FESTUS KAYI FOR THE RESPONDENT/ APPELLANT<o:p></o:p></span></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="text-align:justify;line-height:115%;border:none; mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 1.0pt 0in"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">MR. OSEI OWUSU FOR THE CLAIMANT/ RESPONDENT<o:p></o:p></span></p> </div><p class="MsoNormal" style="text-align:justify;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">CORAM:<o:p></o:p></span></b></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">ASARE- KORANG JA (PRESIDING), MARFUL-SAU JA, ADUAMA-OSEI JA<o:p></o:p></span></p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt; border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none; padding:1.0pt 0in 1.0pt 0in"> <p class="MsoNormal" align="center" style="text-align:center;line-height:115%; border:none;mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt: solid windowtext 1.5pt;padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">JUDGMENT<o:p></o:p></span></b></p> <p class="MsoNormal" align="center" style="text-align:center;line-height:115%; border:none;mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt: solid windowtext 1.5pt;padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif""><o:p> </o:p></span></b></p> </div><p class="MsoNormal" style="text-align:justify;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">MARFUL-SAU, JA:</span></b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""> - This appeal is against the ruling of the High Court, Accra (Fast Track) Division delivered on the 18th September 2008. The appellant and respondent had entered into a contract for the supply of telegraphic poles on the 27th January, 2004. In the performance of the said contract the respondent herein alleged a breach for which it invoked article 23 of the contract, which is the arbitration clause.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">The said article 23 provides that:-<o:p></o:p></span></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">“Any dispute or differences arising out of the contract which cannot be amicably settled between the parties shall be referred to and settled in accordance with the Arbitration Act 1961 (Act 38).”<o:p></o:p></span></i></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">The parties herein agreed to submit the dispute to the Ghana Arbitration Centre for resolution in accordance with the Arbitration Rules of the Centre. By consent Dr. S. K. B. Asante was appointed the sole Arbitrator in January 2007 to arbitrate the dispute. Before the formal arbitration proceedings could start, the respondent who was the claimant in the arbitration requested the suspension of the arbitration pending an attempt at settling the dispute by negotiation. The respondent however on the 30th May, 2007 announced a breakdown of the negotiations for settlement and requested for the resumption of the arbitration.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">The arbitration commenced and after the proceedings an award was published by the sole arbitrator. At page 585 to 630 of the record of appeal is the published arbitral award which was made on the 9th of July, 2008. In the award the Tribunal held for the Respondent herein as follows:<o:p></o:p></span></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">1. The respondent shall pay to the claimant an amount representing the contractual price of 1,245 poles i.e. ¢185,257,800 plus interest at the bank rate prevailing on the date of the award at simple interest with effect from 1st April, 2004 the date of the expected payment till date of payment.<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">2. The respondent shall pay the claimant an amount representing 70% of the contractual price of 1,538 rejected poles plus interest at the prevailing bank rate on the date of Award at simple interest with effect from 1st May 2004, the date of failure to return the poles or allow the claimant to remove same from the treatment plant, till date of payment.<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">3. The respondent shall pay to the claimant the amount representing the cost Of 15,460 poles sold but undelivered to the respondent at the price of ¢200,000 per pole i.e. ¢3,092,000,000.00 plus interest at the prevailing bank rate on the date of the Award at simple interest with effect from 1st July 2004, till date of payment.<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">4. The respondent shall pay an amount representing 16% profit margin on the contractual price of the 29,757 remaining contract poles plus interest at the prevailing bank rate on the date of the Award at simple interest with effect from July 1, 2004 till date of payment. <o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">5. The claim for accrued bank interest and charges in the amount of ¢560,000,000.00 are rejected as an independent head of claim.<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">6. The claim for general damages also fails.<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">7. The above payments shall be made in Ghana cedis.<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">8. The prevailing bank rate, that is, the prime rate determined by the Bank of Ghana today is 16%.”<o:p></o:p></span></i></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">The Tribunal also awarded the respondent herein cost assessed at GH¢20,000.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">Pursuant to the award the respondent herein filed a motion in the High Court (Fast Track Division) on the 22nd July 2008, invoking section 29 of the Arbitration Act (Act 38) to enforce the award. However before respondent’s application could be heard, the appellant herein filed a motion to set aside the award as published by the Arbitral Tribunal under Order 64 R12 of CI 47. The High Court, heard the application to set aside the award on the 18th September 2008 and same was dismissed. Among others the trial court held that the appellant was wrong in proceeding under Order 64R12 of C