GH - B5 PLUS LTD. vs SPECIAL STEEL LTD. & ORS

BRIEF SUMMARY OF FACTS

The Plaintiff a company in the business of trading and selling steel products has had to issue a Writ of Summons and Statement of Claim on 10 th October, 2018 against the 1 st Defendant and 2 nd Defendant the Chairman of the 1 st Defendant Company. The 1 st Defendant Company is also a manufacturer in the steel products business. Their relationship as seller and buyer was carried out in a manner of credit sale agreements and sometimes loans repayable in goods or funds. The Plaintiff has sued the Defendants for the payment of various sums of money for the supply of steel billets, monies advanced to it to pay 1 st Defendant's indebtedness to Electricity Company of Ghana (ECG) and for payment of scraps as well as monies advance for the payment of salaries of 1 st Defendant's workers.

The Defendants denied the claim of the Plaintiff. In the course of the trial certain matters came up which revealed that the 1 st Defendant Company was in liquidation/receivership but nothing was done to amend the title of the suit to reflect the 1 st Defendant Company's name as (In Liquidation/Receivership) as required by the Bodied Corporate Official Liquidations Act, 1963 (Act 180) or the Corporate Insolvency & Restructuring Act, 2020 (Act 1015).

PLAINTIFF'S CASE

The Plaintiff 's narrative is that 1 st Defendant is one of the companies from which it procured iron rods for onward supply to its customers. That on some occasions it supplied steel billet (raw materials for the production of iron rods) on credit to 1 st Defendant for the production of iron rods. That sometime in October 2013, 1 st Defendant's factory was shut down by Electricity Company of Ghana (ECG). This shut down necessitated 1 st Defendant to make requests to Plaintiff for a loan to pay off its indebtedness to the Electricity Company of Ghana (ECG) and also for the payment for scraps and salaries of 1 st Defendant's worker s. The 1 st Defendant again requested Plaintiff to import and supply it with steel billets to enable them produce iron rods for Plaintiff. According to the Plaintiff it acceded to the 1 st Defendant's requests on certain conditions, some of which were that 1 st Defendant was to provide Plaintiff with exclusive supply of iron rods produced from the imported billets supplied, as well as the value of iron rods in the sums advanced to 1 st Defendant to include agreed interest thereon.

Plaintiff averred that pursuant to an agreement on 1 st November, 2013, it imported a

BRIEF SUMMARY OF FACTS

PLAINTIFF'S CASE

Plaintiff averred that pursuant to an agreement on 1 st November, 2013, it imported a

B5 PLUS LTD. vs SPECIAL STEEL LTD. & ORS

Areas of Law

JUDGMENT