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July 5, 1991
HIGH COURT
GHANA
CORAM
JUDGMENT OF BROBBEY J.
The plaintiff obtained a judgment in England on 5 July 1990 for the amount of £31,027.86 inclusive of interest up to the date of payment plus costs of £238. He could not enforce it against the defendants in England.
The defendants are resident in Ghana. The plaintiff therefore registered the judgment in this court under the Courts Act, 1971 (Act 372). He proceeded into execution and realised ¢11,477,065.50. In attempting to levy further execution the plaintiff was met with the issue of accounts raised by the defendants' counsel.
The basic question for determination in this motion is precisely how much was the equivalent of the amount owed when converted into cedis. To resolve this issue a determination has to be made on the correct rate of exchange to be used in converting into cedis the value of the judgment as obtained in pounds sterling.
Act 372, under which the judgment was registered provides in section 77(5) as follows:
"(5) Where the sum payable under a judgment which is to be registered is expressed in a currency other than the currency of Ghana the judgment shall be registered as if it were a judgment for such sum in the currency of Ghana as, on the basis of the rate of exchange prevailing at the date of the judgment of the original Court, is equivalent to the sum so payable."
There is no doubt whatsoever that under this section 77(5) the rate of exchange to be used in determining the value of the judgment registered here is the rate prevailing at the time the judgment was given in England, i.e. 5 July 1990. The rate for that day, as deposed to in the unchallenged affidavit of the defendants, was ¢589.05 to one pound sterling. That is the exchange rate at which I rule that the judgment debt and costs obtained in England should be converted into cedis.
It is now common knowledge in this country that the rate of exchange is very volatile and changes almost daily. As at today, the rate is around ¢670 to one pound sterling. I am not unmindful of the fact that if the plaintiff were to convert the cedis he is to realise from sales on execution into pound sterling now, he will receive much less than the value of the judgment he obtained in England. In fact [p.91] the longer execution is delayed, the less the plaintiff will receive for the judgment.
Even worse is the logical effect of the law as it stands now. It will conduce to fraud in that it will encourage Ghanaians to enter into businesses abroad, fail to pay the amou
AI Generated Summary
Brobbey J addressed how to convert an English monetary judgment into Ghanaian cedis after the plaintiff registered the judgment under the Courts Act, 1971 (Act 372) and partially executed against defendants resident in Ghana. The motion sought to determine the cedi equivalent of the sterling judgment and, specifically, the correct exchange rate under section 77(5). Interpreting the statutes plain language, the court held that conversion must use the exchange rate prevailing on the date of the original foreign judgment (5 July 1990), not the current rate. Although acknowledging currency volatility and the potential unfairness to foreign creditors, the court emphasised the limits of judicial interpretation, citing Sir Rupert Cross, Asibey III v. Ayisi, and Magor and St. Mellons. The court directed conversion at 2589.05 per pound, deducted amounts already realised, and allowed the plaintiff to proceed with execution for the balance; the application was granted.