ASANTE v. COMPAGNIE FRANCAISE DE L'AFRIQUE OCCIDENTALE
February 28, 1961
CORAM
- LORD REID
- LORD TUCKER
- LORD MORRIS OF BORTH-Y-GEST
Areas of Law
- Contract Law
- Property and Real Estate Law
- Civil Procedure
- Evidence Law
- Tort Law
February 28, 1961
CORAM
AI Generated Summary
Lord Morris of Borth-y-Gest, delivering the judgment of the Judicial Committee of the Privy Council, reviewed a dispute concerning ownership of the Coronation Bar in Kumasi. The purchaser claimed first to have entered a partnership with Abire, Manu, and Awuah under Agreement A (5 April 1954), then to have bought out the others under Agreement B (1 June 1954), with full payment confirmed by a receipt dated 5 November 1954. The Supreme Court, per Quashie-Idun, J., found the purchaser an innocent buyer for value and awarded damages for wrongful attachment by a creditor of Abire. The West African Court of Appeal, presided by Coussey, P., reversed, deeming the transaction fictitious or alternatively void under the Statute of Elizabeth. The Privy Council rejected the inferences of fraud, emphasized the trial judges vantage point and the implausibility of alleged collusion surrounding a November suit and non-stamping, and restored the trial judgment with costs.
JUDGMENT OF LORD MORRIS
Lord Morris delivered the judgment of their Lordships. [His Lordship referred to the facts and continued:] The evidence adduced at the trial by the appellant was to the effect that the Coronation Bar and its contents had belonged to three people, viz., Abire, Manu, and Awuah: that he became a partner with them on the terms of an agreement (agreement A) of the 5th April, 1954; that he later bought them out (thereby becoming sole owner) on the terms of an agreement (agreement B) of the 1st June 1954; and that he had paid all the purchase price as was acknowledged by a receipt dated the 5th November, 1954: Evidence was given at the trial by the appellant himself and on his behalf by Abire, by Ama Adade (the mother of Awuah), by Harrison Tuburu, a police corporal and by Awuah. On behalf of the respondents evidence was given by Robert Christian Yeboah, their chief clerk.
The learned judge gave judgment on the 25th October, 1955. He held that the appellant had bought the business and was an innocent purchaser for value. In the course of his judgment he said:
"I have carefully considered the evidence of the plaintiff and of the other witnesses he has called to prove that he had bought the business before it was attached. I have considered the conduct of Abire in the whole transaction and I have come to the conclusion that whatever the conduct of Abire has been towards the defendants, I accept the evidence that the plaintiff bought the business and was an innocent purchaser for value. I am satisfied that after buying the business he made an application for the licence to be transferred into his own name. The transfer was not made before the attachment."
He awarded the appellant the sum of £G669 for loss of profits in respect of the period during which the business was attached.
The respondents appealed to the West African Court of Appeal. Leave was given to the respondents to adduce as further evidence (a) the notice of motion of the appellant (of the 26th January, 1955) for the discharge of the interim attachment order and the affidavit in support of it dated the 28th January, 1955, (b) the respondents' affidavit in opposition dated the 3rd February, 1955, and (c) the minutes of the court dated the 5th February, 1955. It would seem that the respondents intended to advance and did advance some contention based upon the fact that the appellant's claim had, before the trial of the action, already been brought before the learned judge (