DE SIMONE LIMITED vs. OLAM GHANA LIMITED [2017]DLCA4625

Date	2017-04-27
Suit No.	SUIT NO: H1/24/2016
Citation No.	[2017]DLCA4625

V.D. OFOE J.A (PRESIDING)

ADUAMA OSEI J.A

AVRIL LOVELACE-JOHNSON J.A

W. ADDO WITH D. DAJO AND R. ADJEI BEING LED BY YAW O. OSEI FOR PLAINTIFFF/APPELLANT

EWURA ADWOA ANNIE-BUDU FOR DEFENDANT/RESPONDENT

[2017]DLCA4625
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													<main id="main" class="content" style="min-height: 60rem" >DE SIMONE LIMITED<o:p></o:p>vs.<o:p></o:p>OLAM GHANA LIMITED<o:p></o:p><o:p>&nbsp;</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: H1/24/2016&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; &nbsp;DATE: 27TH APRIL, 2017<o:p></o:p>

</div>COUNSEL:<o:p></o:p>W. ADDO WITH D. DAJO AND
R. ADJEI BEING LED BY YAW O. OSEI FOR PLAINTIFFF/APPELLANT <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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EWURA
ADWOA ANNIE-BUDU FOR 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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V.D.
OFOE J.A (PRESIDING), ADUAMA OSEI J.A, AVRIL LOVELACE-JOHNSON 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;
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<p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt;
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</div>AVRIL
LOVELACE-JOHNSON (J.A)<o:p></o:p>The designation of the parties in the
high court will be maintained in this appeal. The Plaintiff sued the Defendant
for the recovery of the sum of US$6,146,363.09 being the amount owed them for
work done regarding the construction of the latter's factory, interest thereon
and an order extending the time for completing the construction of the said
factory.<o:p></o:p><o:p>&nbsp;</o:p>The Defendant denied this claim and counterclaimed
for reliefs of its own.<o:p></o:p><o:p>&nbsp;</o:p>Hearing in the suit commenced but in
the course of the evidence of the Plaintiff's representative on 5th
May 2015, the Defendant applied for a stay of proceedings and sought a referral
of the matter to arbitration. The Plaintiff opposed this but the court granted
the application. Being dissatisfied with this, the Plaintiff has filed the
present appeal.<o:p></o:p><o:p>&nbsp;</o:p>Two grounds of appeal were filed but Counsel
for the Plaintiff states in his written submissions that only the second ground
will be argued. The first ground that the ruling is against the weight of
evidence affidavit adduced is therefore deemed abandoned. The remaining ground
of appeal is that the Learned Judge
erred in law when he granted the application to stay proceedings of the suit
and referred the suit to arbitration.<o:p></o:p><o:p>&nbsp;</o:p>The gist of the submissions of Counsel
for the Plaintiff/Appellant is as follows:<o:p></o:p>1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Despite
the mandatory language of section 7(5) of the Alternative Dispute Resolution
Act (to be referred to simply as the Act hereon), in the light of the
provisions of section 6(1), an interpretation that the Court shall at any stage of the proceedings
refer a suit for arbitration upon discovery that a contract the subject matter
of a suit contains an arbitration agreement cannot be correct.<o:p></o:p>2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Taking
a position contrary to this will lead to the illogical conclusion that the Act
was intended to oust the jurisdiction of the courts in disputes involving
arbitration clauses<o:p></o:p>