RIASAND VENTURES LTD vs. NOBLE GOLD BIBIANI LTD [2016]DLSC2859

Date	2016-04-13
Suit No.	CIVIL APPEAL NO. J4/16/2016
Citation No.	[2016]DLSC2859

ATUGUBA JSC (PRESIDING)

ADINYIRA (MRS) JSC

YEBOAH JSC

BENIN JSC

AKAMBA JSC

COSMOS AMPENGENUO ESQ. WITH HIM REBECCA ATIKPOE FOR THE PETITIONER/RESPONDENT/ RESPONDENT/APPELLANT.

KIZITO BEYUO ESQ. WITH HIM KWESI PAPA OWUSU- ANKOMAH. FOR THE RESPONDENT/APPELLANT/APPELLANT/RESPONDENT.

[2016]DLSC2859
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													<main id="main" class="content" style="min-height: 60rem" >RIASAND VENTURES LTD<o:p></o:p>vs.<o:p></o:p>NOBLE GOLD BIBIANI LTD<o:p></o:p>&nbsp;[SUPREME COURT, ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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CIVIL APPEAL NO. J4/16/2016&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: 13TH
APRIL, 2016<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p>COSMOS AMPENGENUO ESQ.&nbsp; WITH HIM REBECCA ATIKPOE <o:p></o:p>&nbsp;FOR THE
PETITIONER/RESPONDENT/ RESPONDENT/APPELLANT.<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">

&nbsp;KIZITO
BEYUO ESQ.&nbsp; WITH HIM KWESI PAPA OWUSU-
ANKOMAH. FOR THE RESPONDENT/APPELLANT/APPELLANT/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;
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ATUGUBA JSC
(PRESIDING), ADINYIRA (MRS) JSC, YEBOAH JSC, BENIN JSC, AND AKAMBA JSC<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;
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JUDGEMENT<o:p></o:p>

</div>ANIN&nbsp; YEBOAH JSC:-<o:p></o:p>My Lords, this interlocutory is from the ruling of
the Court of Appeal, Accra dated the 28/1/2015.&nbsp;
The legal point to be determined by us appears to be simple but to
appreciate the reasons for our decision I will proceed to briefly state the
facts in this interlocutory appeal.<o:p></o:p><o:p>&nbsp;</o:p>The appellant commenced an action at the Fast
Track Division of the High Court, Accra, in 2013 in a suit titled: RIASAND
VENTURES LTD&nbsp; v NOBLE GOLD BIBIANI
LTD for recovery of certain sums of money from the respondent, a company
incorporated in Australia as Noble Minerals Resources wholly owned NOBLE MINING
GHANA LTD AND DRILLING <o:p></o:p><o:p>&nbsp;</o:p>AND MINING SERVICES LTD which are registered in
Ghana as Ghanaian companies.&nbsp; Noble
Mining Ghana Ltd is the sole shareholder of the respondent in this appeal.&nbsp; The three subsidiary companies which for
purpose of brevity and convenience was referred to by counsel for the
respondent as “Scheme Companies”.&nbsp; As the
“scheme companies” continued to experience financial challenges, the sole
shareholder proposed a scheme of arrangement to prevent the ultimate winding up
of the financially crippled companies, pursuant to section 231 of the Companies
Act of 1963, Act 179 to prevent their ultimate winding up.&nbsp; <o:p></o:p><o:p>&nbsp;</o:p>It was thus clear that the sole purpose for
establishing the scheme was to restructure the debts of the companies to
creditors which of course included the appellant.&nbsp; It was as a result of the said arrangements
that on 27/02/2014, NOBLE MINRALS applied to the High Court, Commercial
Division (Accra) and successfully obtained an order to convene a meeting of creditors
of the “scheme companies” so as to approve the scheme to salvage the distressed
companies.&nbsp; The meeting was duly convened
with notices actually served on all the creditors of the “scheme companies”,
which of course included the appellant herein.&nbsp;
<o:p></o:p><o:p>&nbsp;</o:p><o:p>&nbsp;</o:p>The meeting was held on 24/03/2013 and the
creditors, save the appellant, who was absent endorsed the proposals of the
scheme.&nbsp; However, on 20/09/2013 the Fast
Track High Court, Accra had entered summary judgment at the instance of the
appellant against the respondent herein in suit № AC 737 for part of the amount
due and owing to the appellant.&nbsp; On
27/06/2014 the same court entered judgment for the outstanding claim which was
for damages for breach of contract.<o:p></o:p><o:p>&nbsp;</o:p>Pursuant to the said judgment, the appellant filed
a petition under the Bodies&nbsp; Corporate
(Official Liquidation) Act of 1963 (Act 180) to liquidate the respondent as it
was unable&nbsp; to pay off its debts.&nbsp; The court granted the application for the
winding up on 5/02/2014 and made a consequential order that it by 30/06/2014
the entire judgment debt had not been fully paid the respondent be wound up
under Act 180.&nbsp; Before the winding up
order could take effect, the respondent herein applied to the High court (Fast
Track Division) Accra to stay execution of and to set aside the winding up
order on 15/05/2014.&nbsp; The basis for the
application was that as the “scheme” had taken effect all creditors of the
respondent herein were bound by the High Court’s order, which of course
included the appellant herein.<o:p></o:p>