OIL TEST SERVICES LIMITED vs. SALTPOND OFFSHORE PRODUCING CO. LTD. [2011]DLCA7943

Date	2011-11-03
Suit No.	CIVIL APPEAL NO. HI/8/2011
Citation No.	[2011]DLCA7943

QUAYE J.A. (PRESIDING)

MARFUL-SAU J.A.

HONYENUGA J.A.

MR. ATTA AKYEA WITH HIM RALPH POKU ADUSEI FOR THE DEFENDANT/ APPELLANT

MRS. DELA QUARSHIE TWUM FOR THE PLAINTIFF/RESPONDENT

[2011]DLCA7943
																																						<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" >OIL TEST SERVICES LIMITED<o:p></o:p>(PLAINTIFF/RESPONDENT)<o:p></o:p>vs.<o:p></o:p>SALTPOND
OFFSHORE PRODUCING CO. LTD.<o:p></o:p>(DEFENDANT/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;
padding:0cm 0cm 1.0pt 0cm">

CIVIL
APPEAL NO.&nbsp; HI/8/2011&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: 3RD&nbsp;&nbsp; NOVEMBER, 2011<o:p></o:p>

</div>COUNSEL:<o:p></o:p>MR.
ATTA AKYEA WITH HIM RALPH POKU ADUSEI FOR THE DEFENDANT/ APPELLANT<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0cm 0cm 1.0pt 0cm">

MRS.
DELA QUARSHIE TWUM FOR THE PLAINTIFF/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:0cm 0cm 1.0pt 0cm">

QUAYE J.A. (PRESIDING), MARFUL-SAU J.A.,
HONYENUGA J.A.<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:0cm 0cm 1.0pt 0cm">

JUDGMENT<o:p></o:p>

</div>HONYENUGA,
J.A.<o:p></o:p>This
is an appeal by the defendant/appellant from the decision of the High Court,
Tema dated the 10th day of December, 2008.&nbsp; The said Court ordered the
defendant/appellant to pay the sum of US$977,308.18 being the amount due and
owing to the plaintiff for services rendered to the defendant.&nbsp; The Court also decreed that the payment sum
of US$92,165.59 being interest on the principal sum and finally, a further
interest of 5% per annum on the same principal sum from 11th
December 2008 to the date of judgment against the defendant.<o:p></o:p><o:p>&nbsp;</o:p>The
facts of this appeal are that the plaintiff/respondent whom I shall hereinafter
refer to as the respondent is a limited liability company registered in Nigeria
and carries on the business of oil and gas as well as testing services among
others.&nbsp; The defendant whom I shall
hereinafter refer to as the appellant is a limited liability company in Ghana
and carries on the business of oil exploration among others.&nbsp; By an agreement entered between the parties
on the 21st June 2000, the respondent bound itself to render some
services to the appellant.&nbsp; The
respondent did rendered the services to the appellant and delivered at the
appellant’s area of operation.&nbsp; By the 18th
September 2002, the sum due from the services stood at US$977,308.18 with
interest at the rate of 5% per annum.&nbsp; By
further terms of the contract, the parties agreed that disputes which they were
unable to resolve amicably were to be referred to Arbitration.&nbsp; The appellant defaulted in paying for the
services as agreed and as a result and by the terms of the contract, several
meetings were brokered for the appellant to honour his side of the
contract.&nbsp; At the last meeting of the
parties in Ghana, the appellant proposed to pay the sum of US$889,500.04 to the
respondent in quarterly instalments of US$120,000.00 until the total
indebtedness is liquidated.&nbsp; The
respondent later by a letter from her Solicitors requested that the quarterly
instalments be increased to US$180,000.00.&nbsp;
The appellant had earlier admitted her indebtedness as US$537,396.05. &nbsp;Accordingly, the respondent referred the
matter to Arbitration in Nigeria.&nbsp; The
appellant agreed and initially participated in the arbitration but latter
resiled.&nbsp; The appellant then filed an
originating summons in the High Court, Lagos to contest the appropriateness of
referring the matter to arbitration.<o:p></o:p><o:p>&nbsp;</o:p>However,
the said Court ruled against the appellant to the effect that there was an
issue for arbitration.&nbsp; Meanwhile the
arbitral proceedings proceeded and a final decision was delivered requesting
the appellant to pay his indebtedness together with other awards.&nbsp; The appellant refused to pay his indebtedness
despite repeated demands.&nbsp; The respondent
had no option than to institute proceedings against the appellant claiming as
follows:-<o:p></o:p>“a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The sum of US$977,308.18 (Nine Hundred
and Seventy-seven Thousand, Three Hundred and Eight United States Dollars,
Eighteen United States Cents) being the sum due to the plaintiff for services
rendered to the defendant under the provisions of the Subcontract Agreement between
the parties dated 21st June, 2000.<o:p></o:p>b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest on the sum (a) above at the
rate of 5% per annum from 20th July 2007 to the date of judgment
and/or until the judgment sum is fully liquidated. <o:p></o:p>c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Arbitration Tribunal’s Costs of N6,500,000.00
(Six Million, Five Hundred Thousand Naira) and the plaintiff’s legal cost of
US$97,730.81 (Ninety-seven Thousand, Seven Hundred and Thirty United States
Dollars, Eighty-one United States Cents) both incurred by the plaintiff
pursuant to the Arbitration proceedings herein.<o:p></o:p>d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Costs in this action”.<o:p></o:p><o:p>&nbsp;</o:p>The
Writ of Summons was accompanied by an eighteen paragraph statement of
claim.&nbsp; The respondent entered appearance
on the 19th November 2008 but on the</main>