DR CHARLES KWAME ADOFO v. ESICH LIFE ASSURANCE COMPANY LTD & ORS
2019
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP JUSTICE DR. RICHMOND OSEI-HWERE
Areas of Law
- Insurance Law
- Administrative Law
- Civil Procedure
2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
This case revolves around the interpretation of the Insurance Act, 2006 (Act 724) and the distinction between a Judicial Manager and an Administrator appointed under different sections of the Act. Daniel Aidoo Mensah, claiming to be the Administrator/Judicial Manager of Esich Life Assurance Company Ltd., sought to set aside court processes, particularly a garnishee order, made after his appointment. The court determined that Mensah was appointed as an Administrator under section 180 of the Act, not a Judicial Manager under section 99. The key legal principle established is that the appointment of an Administrator under a protection order does not automatically stay proceedings or halt execution processes against the insurer, unlike the appointment of a Judicial Manager. The court applied the expressio unius est exclusio alterius rule of interpretation to conclude that if the legislature intended for proceedings to cease upon the appointment of an Administrator, it would have expressly stated so. Consequently, the court ruled that the garnishee order remained valid and dismissed the application to halt the garnishee proceeding.
RULING
On 30th April, 2019 leave was granted to Daniel Aidoo Mensah, the applicant herein (who described himself as the Administrator/Judicial Manager of Esich Life Assurance Company Ltd., the 1st defendant therein) to substitute Esich Life Assurance Company Ltd. In the motion on notice for substitution, the applicant also prayed the court to set aside all court processes subsequent to the protection order that led to his appointment as the so called Administrator/Judicial Manager. The matter was adjourned for the court to hear legal arguments relating to the application to set aside all court processes particularly the garnishee order made subsequent to the appointment of Daniel Aidoo Mensah.
Counsel for the applicant argued that upon an application by the National Insurance Commission, the applicant was appointed as the Judicial Manager/Administrator of Esich Life Assurance by the High Court differently constituted under section 99 of the Insurance Act, 2006 (Act 724). That, an order of protection was made on 25thJanuary, 2019 and the applicant was subsequently appointed by the court on 12th February, 2019. Counsel submitted that per section 101 of Act 724 when a judicial management order is in force all proceedings, execution or other legal processes shall not be commenced or continued against the insurer or its assets. Thus, the garnishee order made on 22nd February, 2019 is invalid, as the court had already appointed the applicant. He invited the court to set aside the garnishee nissi order and halt the execution process against Esich Life Assurance (now substituted by the applicant herein).
In a rebuttal to the submissions of counsel for the applicant, counsel for the plaintiff/respondent (hereinafter called the respondent) submitted that the applicant was appointed under section 180 of Act 724 and not section 99. He submitted that per the applicant’s own showing in Exhibit DAM2, he was appointed as an administrator and that the import of section 180 is that if you apply for a protection order you are appointed as an administrator and not a judicial manager. That, a judicial management order is governed by section 99 of Act 724. He submitted that section 92 of Act 724 also allows the National Insurance Commission to apply to the court for liquidation of an Insurance Company and that per section 6 of Bodies Corporate (Official Liquidations) Act, 1963 (Act 180) there is an automatic stay of proceedings when a liquidator is appointed for companies in