AIRPORT CLINIC LIMITED v. PREMIER MUTUAL HEALTH
2019
HIGH COURT
GHANA
CORAM
- ERIC K. BAFFOUR ESQ. J
Areas of Law
- Contract Law
- Civil Procedure
2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
Plaintiff provided medical services to Defendant's employees and sued for non-payment of Gh¢65,759.31. The parties reconciled the amount to Gh¢51,698.95, which Defendant paid. The current dispute is about whether Plaintiff is entitled to interest on the paid amount. The court ruled that the Plaintiff is entitled to interest from the due date until payment. Since no specific rate was agreed upon, interest is to be calculated at the Treasury bill rate.
RULING
The dispute between the parties arose out of a contract for the provision of medical services by the Plaintiff to the employees of the Defendant. Plaintiff came to court alleging non-payment of its bill to the tune of Gh¢65,759.31 together with interest. The parties reconciled accounts and eventually agreed that an amount of Gh¢51,698.95 was what was payable. Defendant has duly settled the principal amount arising out of the reconciliation exercise. Before me now is the claim by Plaintiff seeking for an interest to be paid on the amount of GH¢51,698.95.
With the principal amount agreed between the parties having been paid and the only issue outstanding being that of interest on the monies paid, I was guided by Order 33 Rules 3 and 5 of the High Court (Civil Procedure) Rules, C. I. 47 which states as follows:
“3. The Court may order any question or issue arising in any cause or matter whether of fact or law, or partly of fact and partly of law, and raised by the pleadings to be tried before, at or after the trial of the cause or matter and may give directions as to the manner in which the question or issue shall be stated”.
5. Where it appears to the Court that the decision of any question or issue arising in any cause or matter and tried separately from the main cause or matter substantially disposes of the cause or matter or renders trial of the main cause or matter unnecessary, it may dismiss the cause or matter or make such other order or give such judgment as may be just”.
Accordingly I posed for the consideration of the parties by way of legal arguments the issue as to whether interest on the principal amount paid is exigible, and if so, at what percentage.
THE LAW
Payment of interest may arise as result of agreement between or among parties, by statutory provisions, by trade usage and damages awarded by the court. Generally as a matter of law interest is payable when parties in an agreement express the intent that the transaction entered into shall attract interest. The law will enforce the mutually agreed transaction agreed between parties arrived at arm’s length and in the absence of any of the vitiating factors such as fraud, unconscionability, illegality and the like. For this is how Court (Award of Interest and Post Judgment Interest) Rules, C. I 52 states as Rule 1:
“If the court in a civil cause or matter decides to make an order for the payment of interest on a sum of money due to a party in the action, that interest shall be