ASANTE v. COMPAGNIE FRANQAISE DE L_AFRIQUE OCCIDENTALE.
1956
SUPREME COURT
GHANA
CORAM
- Coussey P.
- Korsah C.J.
- Verity Ag.J.A
Areas of Law
- Commercial Law
- Civil Procedure
- Equity and Trusts
AI Generated Summary
On appeal, President Coussey, joined by Chief Justice Korsah and Acting Justice of Appeal Verity, addressed whether Kojo Asantes claimed purchase of the Coronation Spirit and Chop Bars stock-in-trade and business from Kwabena Abire, Yaw Manu, and D.K. Awuah was genuine or a device to defeat creditors, notably Compagnie Fran e7aise de lAfrique Occidentale. Asante asserted an April 5, 1954 partnership and a June 1, 1954 buyout, supported by payments and a November 5 receipt for a3837 6s. The defendant company had secured an interim attachment to satisfy Abires large debt. Although the trial court treated Asante as an innocent purchaser and awarded a3669 damages, the appellate court found multiple badges of fraud: unstamped agreements, lack of receipts and inventory, failure to change the spirit licence, and a subtenancy contrary to a covenant, as well as inconsistent litigation over the a3100 installment. Applying the Statute of Elizabeth and Twynes Case, the Court held the transaction fictitious or intended to hinder creditors, allowed the appeal, and entered judgment for the defendants with costs.