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ESSUMANBA AND OTHERS v. NORWICH UNION FIRE INSURANCE

June 2, 1967

HIGH COURT

GHANA

CORAM

  • EDUSEI J

Areas of Law

  • Insurance Law
  • Civil Procedure

AI Generated Summary

In a post-judgment application, the High Court addressed a review sought by an insurance company after its defence had been struck out on 19 May 1967 in an action brought under section 10 of the Motor Vehicles (Third Party Insurance) Act, 1958. The plaintiffs had previously obtained a Cape Coast High Court judgment on 1 July 1966 against the insurer’s client, Owusu-Ansah, arising from a motor running-down incident. The insurer, aware of those proceedings, engaged counsel for Owusu-Ansah but refused to satisfy the judgment, contending a change of ownership to Obeng and relying on section 10(2)(b) while an appeal and stay application were pending. Interpreting section 10(2)(b), the court held a stay must actually be granted to excuse payment; thus the insurer remained liable. Nevertheless, invoking Order 42, r. 16(1)(b), the court ordered a temporary stay of execution of its 19 May 1967 judgment pending the Court of Appeal’s decision on the stay application and awarded costs to the plaintiffs.

JUDGMENT