DIZENGOFF GHANA LIMITED VS KWANIM GDK LIMITED
2016
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE NOVISI AFUA ARYENE (MRS.)
Areas of Law
- Contract Law
- Civil Procedure
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
In this case, the Plaintiff supplied Defendant agricultural products and services on credit. Defendant partially paid and owed a remaining balance. An oral agreement to include interest on the outstanding debts wasn't fulfilled, leading to Plaintiff suing for the full amount plus interest and costs. The Defendant counterclaimed for crop damage caused by Plaintiff's alleged wrong instructions. The court ruled in favor of the Plaintiff, awarding the claimed amount and dismissing the Defendant's counterclaim. Key determinations included the duty to prove claims, the burden on counterclaims, and standard of proof in civil cases.
Plaintiff is a dealer in agricultural inputs and communications equipment and Defendant is a company which engages in commercial farming.
Between March and April 2011, Plaintiff supplied Defendant with four separate orders of fertilizers to the tune of GH₵293, 600 on credit.
Plaintiff also supplied Defendant with arrow weedicide in the sum of GH₵38, 000. 00. Defendant paid GH₵40, 000 leaving a balance of GH₵291, 700 to be paid by the end of May 2011. She also repaired communication equipment supplied to defendant at a cost of GH₵3, 414. 60 which has not been paid for.
Plaintiff averred that as at 31st of August, 2011, Defendant’s total indebtedness stood at GH₵295, 069. 25 and at a meeting between representatives of the parties, it was orally agreed that Defendant should pay accumulated interest of GH₵42, 878. 21 for the period 1st September, 2011 to 31st January, 2012. It was further agreed that the total amount of GH₵337, 947. 46 including the agreed interest would be paid by Defendant by post-dated cheques between February and April 2012. Plaintiff contends that Defendant failed to abide by the terms of the oral agreement and ignored written reminders and formal demand letters written to her.
Plaintiff claims against the Defendant the following reliefs: I. The sum of GH₵337, 947. 46 being the balance outstanding and due from the Defendant to the Plaintiff being the balance of goods and services provided on credit at the Defendant’s request by the Plaintiff.
Statutory interest from 1st March 2012 until date of final payment.
Legal costs at 10% of claims (1) and (11) above.
The claim was vehemently resisted by Defendant who in a Statement of Defence filed on 11th June, 2012 disputed the Claim and counterclaimed for an order directing Plaintiff to pay monetary compensation to Defendant for financial loss suffered by her due to wrong instructions given by Plaintiff for the use of the Arrow weedicide.
Defendant contended that as a result of wrong instructions given by Plaintiff on the application of the arrow weedicide, maize planted on 150 hectors got burnt and another 200 hectors of maize suffered suppressed growth leading to losses as a result of which she was unable to liquidate her debt.
Defendant further averred that the principal sum owed was GH₵291, 700 and not GH₵295, 069. She contended that the communications equipment supplied and the services provided therefor were fully paid for.
Defendant denied Plaintiff’s claim on the oral agreement