ECOBANK GHANA LIMITED vs. ALUMINIUM ENTERPRISE LIMITED [2020]DLSC8836

Date	2020-05-13
Suit No.	CIVIL APPEAL NO. J4/18/2020
Citation No.	[2020]DLSC8836

DOTSE JSC (PRESIDING)

GBADEGBE JSC

APPAU JSC

MARFUL-SAU JSC

KOTEY JSC

FUI TSIKATA WITH HIM DOMINIC QUASHIGAH FOR THE PLAINTIFF/APPELLANT/APPELLANT

E. A. VORDOAGU WITH OLIVER SEBEH FOR THE DEFENDANT/RESPONDENT/RESPONDENT

[2020]DLSC8836
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													<main id="main" class="content" style="min-height: 60rem" ><a name="_Hlk35510717">ECOBANK GHANA LIMITED<o:p></o:p></a>(PLAINTIFF/APPELLANT/APPELLANT)<o:p></o:p>vs.<o:p></o:p>ALUMINIUM ENTERPRISE LIMITED<o:p></o:p>(DEFENDANT/RESPONDENT/RESPONDENT)<o:p></o:p><o:p>&nbsp;</o:p>[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. J4/18/2020&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &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 MAY, 2020<o:p></o:p>

</div>COUNSEL:<o:p></o:p>FUI TSIKATA WITH HIM
DOMINIC QUASHIGAH FOR THE PLAINTIFF/APPELLANT/APPELLANT.<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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E. A. VORDOAGU WITH
OLIVER SEBEH FOR THE DEFENDANT/RESPONDENT/RESPONDENT. <o:p></o:p>

</div>CORAM:<o:p></o:p>&nbsp;DOTSE JSC (PRESIDING), GBADEGBE JSC, APPAU
JSC, MARFUL-SAU JSC, KOTEY JSC<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;border:none;
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padding:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm">JUDGMENT<o:p></o:p>

</div>PROF.
KOTEY, JSC:-<o:p></o:p>1.
Introduction<o:p></o:p>This is an appeal against the judgment of the
Court of Appeal substantially affirming the decision of the trial High Court,
but reversing it in one small respect.<o:p></o:p>The background to the controversy is that in the
early 1990s, following negotiations between the Plaintiff/Appellant/Appellant (Plaintiff),
the Defendant/Respondent/Respondent (Defendant) and the European Investment
Bank (EIB), a number of transactions were entered into for the financing of a
project to expand the factory and operations of the Defendant.<o:p></o:p>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
These agreements included
a loan agreement between EIB and the Plaintiff, dated 30th January
1992 and 7th February 1992 (Exhibit ‘1’), by which EIB lent to the
Plaintiff, One hundred and sixty-five thousand Ecus (165,00.00 Ecus) which was
to be on-lent by the Plaintiff to the Defendant.&nbsp; <o:p></o:p>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A second loan agreement
was entered into by the Plaintiff and the Defendant, dated 11th
March 1992 (Exhibit ‘A’), by which the Plaintiff granted the Defendant a loan
of One hundred and sixty-five thousand Ecus (165, 000.00 Ecus).<o:p></o:p>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to Exhibit
‘1’, EIB granted the Plaintiff a loan of Thirty-five thousand Ecus to part
finance the subscription by the Plaintiff of shares in the Defendant.<o:p></o:p>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Plaintiff and
the Defendant entered into a share purchase agreement dated 7th
April 1992 (Exhibit ‘5’) by which the Plaintiff bought 30,000,000 shares,
representing 10% shares in the Defendant, subject to terms and conditions.<o:p></o:p>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
EIB granted the
Defendant a loan of Two million, eight hundred thousand Ecus (2,800,000.00 Ecus).
The said sum of 2.8 million Ecus was to be disbursed through the Plaintiff.<o:p></o:p>By Exhibit ‘5’, one (1) representative of the
Plaintiff was appointed to serve on the five-member board of directors of the
defendant. This representative became the chairman of the Finance Committee of
the board.<o:p></o:p>The contract between the Plaintiff and the Defendant
for the loan of 165,000 Ecus (Exhibit ‘1’) provided for a five-year moratorium
for the payment of the principal sum after which the loan was to be paid in
seven annual installments commencing on 30th September 2003.<o:p></o:p>Pursuant to Exhibit ‘1’, two European expatriate
consultants were engaged by the Defendant f</main>