ALLIED COMPANY LIMITED v. LEGACY GENERAL CONST
2018
HIGH COURT
GHANA
CORAM
- GEORGE BUADI J HIGH COURT (COMMERCIAL) 5
Areas of Law
- Civil Procedure
- Contract Law
- Evidence Law
2018
HIGH COURT
GHANA
CORAM
AI Generated Summary
Plaintiff, an oil marketing company, sued defendant to recover GH¢350,528.33 for petroleum products supplied on credit. Defendant admitted the credit arrangement but disputed the debt, claiming it had made several payments not accounted for. After defendant repeatedly failed to comply with court directives, its defense was struck out. The court proceeded with plaintiff’s case in the absence of defendant and its lawyers, finding sufficient evidence on a balance of probabilities to rule in favor of plaintiff. The court granted all reliefs sought by plaintiff, noting defendant’s failure to challenge plaintiff’s claims.
JUDGMENT
1 By a writ of summons plaintiff’s action against defendant simply is for:
i. recovery of the sum of GH¢350,528.33 being balance outstanding against the Defendant for lubricants and petroleum products supplied to the Defendant which sum the Defendant has failed or refused to pay despite repeated demands.
ii. Interest on the said GH¢350,528.33 at the prevailing bank rate from the 1st day of April, 2013 to the date of final payment.
2 Plaintiff is an incorporated oil marketing company, with its main office in Accra. Defendant is one of its customers to which it supplies petroleum products on credit on request. Plaintiff states that defendant resorted to breaching terms of their Agreement by failing and/or refusing to pay for products it had supplied on credit, and thus defendant had been indebted to it to the tune of GH¢350,528.33. Plaintiff avers that defendant has failed to settle the indebtedness despite repeated its demands including a letter from its lawyers. According to plaintiff, defendant shall not settle its indebtedness to it unless the court compels it by order.
3 Defendant admits the credit supply arrangement with plaintiff for supply of petroleum products. It however denies breaching the terms, contending that it strictly kept to the terms of the supply agreement, as plaintiff did not hesitate to supply it with products upon request. Defendant claims to have made series of payments to plaintiff, which plaintiff has not been taking into account in calculating its outstanding indebtedness. Defendant contends that it had made several efforts in drawing plaintiff’s attention to the anomalies in its account with plaintiff but same yielded no results. Defendant says it is ready to pay his just debt only after an accountant or an auditor has calculated all its transactions with plaintiff to reveal its true and proper indebtedness to plaintiff. It denies therefore owing plaintiff.
4 The pretrial court set down the following single straight issues for trial:
Whether or not the Defendant is indebted to the Plaintiff to the tune of GH¢350,528.33 being balance outstanding against the Defendant for the supply of lubricants and petroleum products to it by the Plaintiff. Any other issues arising on the pleadings.
5 Both parties have serially defaulted in complying with the court’s directives for trial; defendant in particular with respect to filing of witness statements. Defendant had had to engage new lawyers1 following withdrawal of their e