AKWASS FARMS LTD VS. GHANA TELECOM CO. LTD [2010]DLCA4862

Date	2010-12-09
Suit No.	SUIT NO. HI/30/2010
Citation No.	[2010]DLCA4862

ASARE- KORANG JA (PRESIDING)

MARFUL-SAU JA

ADUAMA OSEI JA

[2010]DLCA4862
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													<main id="main" class="content" style="min-height: 60rem" >AKWASS FARMS LTD<o:p></o:p>(APPLICANT/RESPONDENT)<o:p></o:p>VS.<o:p></o:p>GHANA TELECOM CO. LTD<o:p></o:p>(RESPONDENT/ APPELLANT)<o:p></o:p>[COURT
OF APPEAL, ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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SUIT NO. HI/30/2010&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: 9TH DECEMBER, 2010<o:p></o:p>

</div>CORAM:<o:p></o:p>ASARE-
KORANG JA (PRESIDING), MARFUL-SAU JA, ADUAMA OSEI JA<o:p></o:p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt;
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<p class="MsoNormal" align="center" style="text-align:center;line-height:115%;
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</div>MARFUL-SAU, JA: -
This appeal is against the ruling of the High Court, Accra (Fast Track)
Division delivered on the 18th September 2008.&nbsp;
The Appellant and Respondent had entered into a contract for the supply
of telegraphic poles on the 27th January, 2004.&nbsp;
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>The
said article 23 provides that:-<o:p></o:p>“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>The
parties herein agreed to submit the dispute to the Ghana Arbitration Centre for
resolution in accordance with the Arbitration Rules of the Ghana Arbitration
Centre.&nbsp; By consent Dr. S. K. B. Asante
was appointed the sole Arbitrator in January 2007 to arbitrate the
dispute.&nbsp; 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.&nbsp; The Respondent however on
the 30th May, 2007 announced a breakdown of negotiations for settlement and
requested a resumption of the arbitration.<o:p></o:p>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.&nbsp; In the award the Tribunal held for the Respondent
herein as follows:<o:p></o:p>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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&nbsp; effect from 1st April, 2004 the date of the
expected payment till date of payment.<o:p></o:p>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 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>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
The respondent shall pay to the claimant the amount representing the cost <o:p></o:p>&nbsp;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&nbsp; with effect from 1st July&nbsp;&nbsp;&nbsp;&nbsp; 2004, till date of payment.<o:p></o:p>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
The respondent shall pay an amount representing 16% profit margin on the&nbsp;&nbsp;&nbsp; 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>5.&nbsp;&nbsp;&nbsp;&nbsp;
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>6.&nbsp;&nbsp;&nbsp;&nbsp;
The claim for general damages also fails.<o:p></o:p>7.&nbsp;&nbsp;&nbsp;
The above payments shall be made in Ghana cedis.<o:p></o:p>8.&nbsp;&nbsp;&nbsp;
The prevailing bank rate, that is, the prime rate determined by the Bank
of Ghana today is 16%.”<o:p></o:p>The
Tribunal also awarded the respondent herein cost assessed at GH¢20,000.<o:p></o:p>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.&nbsp; 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.&nbsp; Among others the trial court held that the
appellant was wrong in proceeding under Order 64R12 of CI 47 instead of section
26 of the Arbitration Act (Act 38).&nbsp; It
is against this ruling&nbsp; that the
appellant who was the respondent in the arbitration has appealed to this court
on the following grounds as contained in the Notice of Appeal:-<o:p></o:p>