CARBON COMMODITIES DMCC (PLAINTIFF) vs. TRUST LINK VENTURES LTD (RESPONDENT) [2019]DLHC7124

Date	2019-02-11
Suit No.	SUIT NO.RPC/196/2015
Citation No.	[2019]DLHC7124

HER LADYSHIP JUSTICE ANGELINA MENSAH-HOMIAH (MRS)

YVONNE NYARKO ESQ. WITH LILLY NTREH ESQ. FOR NAA AMA STEPHENS ESQ FOR PLAINTIFF/ RESPONDENT.

NAA AYORKOR CATO-BROWN ESQ. FOR OSAFO BUABENG FOR DEFENDANT/APPLICANT.

[2019]DLHC7124
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													<main id="main" class="content" style="min-height: 60rem" >CARBON COMMODITIES DMCC<o:p></o:p>(PLAINTIFF)<o:p></o:p>vs.<o:p></o:p>TRUST LINK VENTURES LTD<o:p></o:p>(RESPONDENT)<o:p></o:p><o:p>&nbsp;</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/196/2015 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &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: 11TH FEBUARY, 2019<o:p></o:p>

</div>COUNSEL: <o:p></o:p>YVONNE NYARKO ESQ., WITH
LILLY NTREH ESQ., FOR NAA AMA STEPHENS ESQ FOR PLAINTIFF/ RESPONDENT.<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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NAA
AYORKOR CATO-BROWN ESQ., FOR OSAFO BUABENG FOR DEFENDANT/APPLICANT.<o:p></o:p>

</div>CORAM:<o:p></o:p>HER LADYSHIP JUSTICE
ANGELINA MENSAH-HOMIAH (MRS)<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="margin-bottom:0in;margin-bottom:.0001pt;
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</div>This
is an application for stay of proceedings and referral to arbitration filed by
counsel for the defendant/applicant (applicant).<o:p></o:p>It
is provided under section 6(1), 7(1) and 7(5) of the Alternative Dispute Resolution
Act 2010, Act 798 as follows:<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Application to court <o:p></o:p>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) Where there is an arbitration
agreement and a party commence an action in a court, the other party may on
entering appearance, and on notice to the party who commenced the action in
court, apply to the court to refer the action or a part of the action to which
the arbitration agreement relates, to arbitration. <o:p></o:p>Reference
by court <o:p></o:p>7.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) Where a court before which an
action is pending is of the view that the action or a part of the action can be
resolved through arbitration that court may with the consent of the parties in
writing, despite that there is no arbitration agreement in respect of the
matter in dispute, refer the action or any part of the action for arbitration. <o:p></o:p>&nbsp;(5) Where in any action before a court the
court realizes that the action is the subject of an arbitration agreement, the
court shall stay the proceedings and refer the parties to arbitration<o:p></o:p>The
parties are before this court as a result of a contract for the sale and supply
of fish by the plaintiff to the defendant.&nbsp;
It is not in doubt that the agreement between the parties contains an
arbitration clause. Counsel for the defendant/Applicant (applicant) filed the
present application to invoke the said arbitration clause, he prayed the court
to stay proceedings and refer the matter to arbitration. <o:p></o:p>In
the affidavit in support of the application, it was deposed that the parties
expressly agreed that any dispute arising between the parties out of or in
connection with this agreement should be submitted to an arbitral tribunal with
a seat in Zurich. The agreement was exhibited and marked as “TL”. <o:p></o:p>Counsel
for applicant based his arguments on two main grounds. The first is that by
section 7(5) of the Alternative Dispute Resolution Act, 2010 (Act 798), this
court is mandated to stay proceedings. Counsel argued that by section 42 of the
Interpretation Act 2009 (Act 792), the expression ‘shall’ is to be construed as
‘imperative and mandatory’ and so this court must stay proceedings.<o:p></o:p>The
second ground is that the applicant has resorted to the invocation of the
arbitration clause primarily due to the difficulty and inability of the
applicant to prepare a credible witness statement to prosecute its defence to
the claim. Counsel attributed this to the refusal of the respondent to furnish
the applicant with two documents in its possession which are essential to the
defence, namely, a credit insurance document and a report sent by two former
employees of the Respondent.<o:p></o:p>Concluding,
counsel cited and relied on the case of BCM
Ghana Ltd v. Goldfields Ltd (2005-2006) SCGLR 602 at 603 where the Supreme
Court admonished the courts ‘to strive to uphold dispute resolution clauses in
agreements’. On that note, counsel prayed the court to grant the instant
application.<o:p></o:p>