CIRRUS OIL SERVICES LIMITED v. RICH OIL COMPANY LIMITED

The Plaintiff caused to be issued a Writ of Summons against the Defendant

claiming as follows:-

1. An Order for the recovery of the sum of Eight Hundred and Twenty-Two

Thousand, Nine Hundred and Fifty Ghana Cedis and Fifty Three

Pesewas (GH¢822,950.53).

2. Interest on above mentioned amount from September 2016 till the date of

final payment.

3. Cost including fees assessed at 5% of the total amount outstanding.

The Defendant upon receipt of the Plaintiff’s Writ of Summons refused

to enter appearance.

The Plaintiff therefore applied for and obtained Judgment in Default of

Appearance on the 26th October, 2018. When the Plaintiff began the execution

processes of the said Judgment the Defendant applied to the Court and the said

default judgment was set aside to enable the Defendant to contest the quantum

of its indebtedness to the Plaintiff.

The Defendant pursuant to the Order setting aside the Default Judgment filed a

Statement of Defence and later an Amended Statement of Defence and a

Counter Claim.

The Court took the Application of Directions and directed the parties to file their

respective Witness Statement for a Case Management Conference to be taken.

The Defendant however refused to comply with the orders of the Court to file

its Witness Statement. The Court therefore invoked 32 rule 7 sub rule 3 (5) of

C.I. 47 and struck out the Defendants Defence and the Defendants counter-

claim. The Witness Statement filed by the Plaintiff was adopted for the trial.

The Court ordered the Plaintiff to serve the Defendant with a Hearing Notice

for the Suit to Commerce. The Plaintiff duly served the Defendant with the

Hearing Notice but the Defendant refused to attend the trial. The Court there

commenced with the trial.

At the trial, the Plaintiff gave evidence per its Witness Statement. In its Witness

Statement, the Plaintiff gave evidence that it is a limited liability company

registered under the law of Ghana and engaged in the business of bulk oil

storage and distribution.

The Defendant is also a registered limited liability Company engaged in the

business of oil marketing. The Plaintiff supplied to the Defendant various

quantities of petroleum products on or about 2015 by virtue of which the

Defendant came to accrue in outstanding debt of Three Billion, Six Hundred and

Forty Seven Thousand and Fifty Ghana Cedi, Fifty Three Pesewas

(GH¢3,647,050.53) due and payable to the Plaintiff as of March 11, 2015.

A payment plan was ag