DAWOHODO MANU. & MARK. LTD VS KEEGAN RESOURCES GH LTD
2016
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE JANAPARE A. BARTELS-KODWO (MRS)
Areas of Law
- Contract Law
- Property and Real Estate Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The case involved an amended Writ of Summons where the plaintiff sued the defendant, seeking declarations that certain provisions of a Deed of Assignment were illegal under Act 703. The court examined whether the Minerals Commission's interpretation of the Mining Law was correct, the legality of the defendant's cooperation clauses, and whether an illegal clause can be severed from the contract without affecting its validity. The court ruled that the Minerals Commission's interpretation was incorrect, the defendant's cooperation clause was lawful, and upheld the Deed of Assignment as valid.
By an amended Writ of Summons and accompanying Statement of Claim the Plaintiff sued the Defendant for the following reliefs: i. A declaration that the s. 3. 2 of the Deed of Assignment dated November 17, 2010 is illegal and unenforceable and void to the extent that it violates Act 703. ii.
A declaration that the consent dated January 11, 2011 to the Deed of Assignment between the Plaintiff and the Defendant which covers an approximate area of 10. 36 sq.
km located at Essase in the Amansie West District of the Ashanti Region of Ghana is void to the extent that it violates Act 703. iii.
An order the Deed of Assignment dated November 17, 2010 is illegal and unenforceable and void.
Recovery for possession and damages.
v. An order of the Court directed at the Minerals Commission to expunge from its records the defendant’s interest in the records of the Minerals Commission.
An order of perpetual injunction restraining the defendant, its agents, assigns, privies, representative, workmen and those claiming under or by them in law and in any manner whatsoever from interfering with Plaintiffs ownership, and or control of the Schedules“A” which includes Schedule “B”. vii.
Any other order or such further orders as the Honourable Court shall deem fit.
It is Plaintiff’s case that on the 22nd November, 2002, the Government of Ghana granted it a right and license to prospect for and prove gold and base metals in land described in the Statement of Claim as Schedule “A”. This schedule by an agreement, Plaintiff granted same to the Defendant for inter alia One Million, One Hundred Thousand US Dollars (US$1, 100, 000. 00) which the Defendant duly paid.
There is however a portion of Schedule “A” described in the agreement dated 17th November, 2010 as Schedule “B” and same delineated on a plan attached thereto as Schedule “C”. According to the Plaintiff by the Deed of Assignment between the parties, the Defendant undertook to cooperate and help Plaintiff obtain the requisite small scale mining license and other relevant permits for the Plaintiff to carry out mining in Schedule “C” for a fixed period of two years.
Therefore by the agreement the Defendant was required to sublease the Schedule“C” to the Plaintiff to operate alluvial gold mining and for the Defendant to apply for the consent of the Minerals Commission for the said sublease.
The Defendant failed to do this until 26th June, 2012 when the period to apply had almost expired.
The Minerals Commission wrote b