AKWASS FARMS LTD v. GHANA TELECOM CO. LTD

MARFUL-SAU, JA: -

This appeal is against the ruling of the High Court, Accra (Fast Track) Division delivered on the 18th September 2008. The appellant and respondent had entered into a contract for the supply of telegraphic poles on the 27th January, 2004. In the performance of the said contract the respondent herein alleged a breach for which it invoked article 23 of the contract, which is the arbitration clause.

The said article 23 provides that:-

“Any dispute or differences arising out of the contract which cannot be amicably settled between the parties shall be referred to and settled in accordance with the Arbitration Act 1961 (Act 38).”

The parties herein agreed to submit the dispute to the Ghana Arbitration Centre for resolution in accordance with the Arbitration Rules of the Centre. By consent Dr. S. K. B. Asante was appointed the sole Arbitrator in January 2007 to arbitrate the dispute. Before the formal arbitration proceedings could start, the respondent who was the claimant in the arbitration requested the suspension of the arbitration pending an attempt at settling the dispute by negotiation. The respondent however on the 30th May, 2007 announced a breakdown of the negotiations for settlement and requested for the resumption of the arbitration.

The arbitration commenced and after the proceedings an award was published by the sole arbitrator. At page 585 to 630 of the record of appeal is the published arbitral award which was made on the 9th of July, 2008. In the award the Tribunal held for the Respondent herein as follows:

The respondent shall pay to the claimant an amount representing the

contractual price of 1,245 poles i.e. ¢185,257,800 plus interest at the bank

rate prevailing on the date of the award at simple interest with effect from

1st April, 2004 the date of the expected payment till date of payment.

The respondent shall pay the claimant an amount representing 70% of the

contractual price of 1,538 rejected poles plus interest at the prevailing

bank rate on the date of Award at simple interest with effect from 1st May

2004, the date of failure to return the poles or allow the claimant to

remove same from the treatment plant, till date of payment.

The respondent shall pay to the claimant the amount representing the cost

Of 15,460 poles sold but undelivered to the respondent at the price of

¢200,000 per pole i.e. ¢3,092,000,000.00 plus interest at the prevailing bank

rate on the date of the Award at simple interest with