AFAM CONCEPT vs. SONIAG COMPANY LTD [2017]DLCA4427

Date	2017-10-26
Suit No.	CIVIL APPEAL NO: H1/122/2017
Citation No.	[2017]DLCA4427

E K. A. ACQUAYE JA (PRESIDING)

S. DZAMEFE JA

M. M. AGYEMANG (MRS.) JA

NANA BOAKYE ADU-POKU FOR THE PLAINTIFF / APPELLANT

AKOSUA GYAMFI-DUAMROH FOR THE DEFENDANT / RESPONDENT

[2017]DLCA4427
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													<main id="main" class="content" style="min-height: 60rem" ><span lang="EN-GB" style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-theme-font:minor-bidi;
color:#00B0F0">AFAM CONCEPT <o:p></o:p>(PLAINTIFF/ RESPONDENT/APPELLANT)<o:p></o:p>&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;vs.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p><span lang="EN-GB" style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-bidi-font-family:&quot;Times New Roman&quot;;mso-bidi-theme-font:minor-bidi;
color:#00B0F0">SONIAG COMPANY LTD <o:p></o:p>(DEFENDANT/APPLICANT/RESPONDENT)<o:p></o:p>&nbsp;<o:p></o:p>[COURT OF APPEAL (CIVIL 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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CIVIL APPEAL NO:&nbsp; H1/122/2017&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: 26TH OCTOBER,
2017<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p>NANA
BOAKYE ADU-POKU FOR THE PLAINTIFF / APPELLANT<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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AKOSUA
GYAMFI-DUAMROH FOR THE DEFENDANT / 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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E
K. A. ACQUAYE JA (PRESIDING), S. DZAMEFE JA, M. M. AGYEMANG (MRS.) JA<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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JUDGMENT<o:p></o:p>

</div>AGYEMANG JA:<o:p></o:p>In this appeal, the plaintiff/respondent/appellant
(referred to as the plaintiff), seeks a setting aside of the ruling of the High
Court (Commercial Division) of 26th September 2016 which granted the
prayer sought by the defendant/applicant/respondent (referred to as the defendant),
for the plaintiff to provide security for the costs of the plaintiff’s suit.<o:p></o:p>The matters giving rise to the appeal are indeed
simple. <o:p></o:p>The plaintiff herein, the manufacturer of health
and beauty products, based in the USA trading as such company, and also as JF
Lab Inc., a company said to be owned by it, entered into an agreement with the
defendant for the supply of its products to the defendant, a company registered
in Ghana. The terms of the transaction were that the defendant would make a
down-payment of fifty-percent of the price of the goods supplied to it and then
pay the balance on an eighty-day credit window. The parties kept a running
balance of payments and outstanding indebtedness. Following a reconciliation
exercise, the plaintiff commenced action against the defendant for the payment
of the sum of USD320,839.43 being an alleged outstanding balance owed by the defendant
to the plaintiff, together with interest and costs.<o:p></o:p>The defendant responded to this claim by asserting
in an oblique fashion, that even if the said sum was owed by it to the
plaintiff, it was not comparable to the sum owed the defendant by the plaintiff,
sums of money described as unrecorded payment, freight overcharges, as well as
interest on the said amount, an alleged total of USD2,111,683. This alleged sum,
as well as damages for fraudulent misrepresentation were claimed by the
defendant in a counterclaim.<o:p></o:p>The defendant then applied to the court for the plaintiff
to be made to provide security for costs.<o:p></o:p>In his ruling, the learned trial judge in granting
the application said inter alia that:
“…the defendant has raised counterclaim
against plaintiff and therefore their fear of inability to reap fruits of their
success in the case is not fluke or non-existent due to the fact only even that
plaintiff is nonexistent compa</main>