WAPIC INSURANCE (GH) LTD vs. DPS COMPANY LTD AND MESUMA DELIMAN OSMAN [2016]DLHC6264

Date	2016-02-29
Suit No.	Suit No. RPC/211/13
Citation No.	[2016]DLHC6264

JENNIFER DODOO (MRS)

MARGARET OWUSU FOR PLAINTIFF

MOHAMMED AWAL FOR DEFENDANTS

[2016]DLHC6264
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													<main id="main" class="content" style="min-height: 60rem" >WAPIC INSURANCE (GH) LTD<o:p></o:p>{PLAINTIFF}<o:p></o:p>vs.<o:p></o:p>DPS COMPANY LTD AND MESUMA DELIMAN OSMAN<o:p></o:p>{DEFENDANTS}<o:p></o:p>[HIGH
COURT (COMMERCIAL DIVISION), 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. RPC/211/13&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: 29TH FEBRUARY 2016<o:p></o:p>

</div>COUNSEL:
<o:p></o:p>MARGARET OWUSU FOR PLAINTIFF<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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MOHAMMED AWAL FOR DEFENDANTS<o:p></o:p>

</div>CORAM:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>JENNIFER DODOO (MRS) JUSTICE OF THE
HIGH COURT<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%;
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">JUDGMENT<o:p></o:p>

</div><o:p>&nbsp;</o:p>The Plaintiff’s claim against the
Defendants in its amended writ of summons filed on 10th June 2014 is
for; the recovery of GH¢172,092.69 together with interest or in the alternative
the judicial sale of all properties moveable and immoveable identified as
belonging to the 2nd Defendant by virtue of the Personal Counter
Indemnity executed in favour of the Plaintiff. &nbsp;<o:p></o:p><o:p>&nbsp;</o:p>It was the Plaintiff’s case that it
was a subsidiary of Access Bank (formerly Intercontinental Bank) licensed to
conduct the business of insurance.&nbsp; The 1st
Defendant was a limited liability company which had a right to market and sell
Airtel Ghana’s mobile phone and services.<o:p></o:p>&nbsp;
<o:p></o:p>According to&nbsp; the Plaintiff, &nbsp;Access Bank in partnership with the Plaintiff
had an origination deal in which the Bank would provide a bank guarantee in
favour of Airtel against a possible default by distributors in repayment to Airtel
Ghana for airtime lifted by the distributors of which the 1st
Defendant was one.&nbsp; The Plaintiff as part
of the transaction was to provide a counter guarantee to the Bank which it did
in this case.<o:p></o:p><o:p>&nbsp;</o:p>The Plaintiff stated further that
the 1st Defendant also provided a Counter Indemnity dated 23rd
February 2011 to indemnify it from and against all action, proceedings,
damages, claims, costs, demands or expenses, which the Bank may suffer, incur
or sustain by reason or on account of the Bank having given the Bank Guarantee
and to reimburse the Plaintiff in respect of all payments, which may be made by
the Bank in favour of Airtel Ghana Ltd.&nbsp;
Additionally, the 2nd Defendant issued a Personal Guarantee
in favour of the Plaintiff.<o:p></o:p><o:p>&nbsp;</o:p>The Plaintiff contended that this
guarantee was extended from February 2012 till April 2012.&nbsp; Due to the 1st Defendant’s
inability to pay Airtel, the money owed, Airtel fell on the guarantee issued by
Plaintiff to recoup its money.<o:p></o:p><o:p>&nbsp;</o:p>The Defendants in their defence
stated that the Bank unilaterally cancelled its guarantee with them thus
throwing them out of business.&nbsp; They
contended that the Plaintiff only provided insurance cover for the Bank
Guarantee.&nbsp; Therefore aside of receiving
insurance premiums from the 1st Defendant the Plaintiff had no
dealings with the Defendants.<o:p></o:p><o:p>&nbsp;</o:p>The issues settled for trial of this
matter are:<o:p></o:p><o:p>&nbsp;</o:p><ol style="margin-top:0in" start="1" type="1">
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">Whether or not the Plaintiff is
 clothed with capacity to institute the present action?<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">Whether or not the 2nd
 and 3rd Defendants have been wrongfully joined to the suit?<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">Whether or not the Plaintiff
 provided the 1st Defendant with insurance cover for the Bank
 Guarantee?<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">Whether or not the Plaintiff
 acted as surety for the 1st Defendant in the transaction with
 the Bank and Airtel Ghana Ltd?<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">Whether or not the 1st
 Defendant failed to make good on the value of the losses incurred as a
 result of its failure to honour the distributorship obligation to Airtel
 Ghana Ltd?<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">Whether or not the Bank called
 in on the Counter Guarantee issued in favour of the 1st
 Defendant by the Plaintiff as a result of the Defendants’ failure to
 honour its obligations to Airtel Ghana Ltd?<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">Whether or not the Plaintiff as
 surety is subrogated or invested with the rights of the Bank against the
 Defendants?<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">Whether or not the 2nd
 Defendant issued a Personal Counter Indemnity in favour of the Plaintiff?<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">Whether or not the 1st
 Defendant issued a Corporate Counter Guarantee in favour of the Plaintiff?<o:p></o:p></li>
 <li class="MsoNormal" style="text-align:justify;line-height:115%;mso-list:l1 level1 lfo1">