GHANA LIBYAN ARAB HOLDING CO. LTD. vs ATLANTIC TABLEWARE MANUFACTURING CO. LTD
2022
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE AFI AGBANU KUDOMOR (MRS.)
Areas of Law
- Alternative dispute resolution
- Civil Procedure
- Contract Law
2022
HIGH COURT
GHANA
CORAM
AI Generated Summary
This High Court, Accra, Commercial Division matter arises from a lease dispute in which the Judgment-Creditor pursued enforcement after securing an arbitral award on 5 March 2021. The civil action, initiated on 24 May 2019 under a Lease Agreement dated 12 April 2012, sought USD 811,267.33 and GHS 178,028.63, interest from 28 September 2018, damages for breach of contract, and costs on an indemnity basis. Following registration for enforcement on 22 June 2021 and service of a Notice of Entry of Judgment on 28 July 2021, execution commenced and properties at the Judgment-Debtor’s factory and warehouse in Tema and Weija, including vehicles, machines, raw materials and finished products, were attached on 8 June 2022. After the attachment, Mr. Li Li, acting for the Judgment-Debtor, engaged the Judgment-Creditor, and the parties filed Terms of Settlement on 18 August 2022. The settlement provides a USD 400,000 payment plan in four equal installments, payment of auctioneers’ and related fees, default consequences allowing execution of the full judgment debt less payments with post-judgment interest, and discharge upon compliance. The Court adopted the Terms as a compromised judgment in lieu of the earlier arbitral award enforcement.
TERMS OF SETTLMENT ADOPTED AS COMPROMISED JUDGMENT OF THE PARTIES IN LIEU OF ARBITRATION AWARD DATED 5TH MARCH 2021
A. Whereas the Plaintiff/Judgment/Creditor, (hereafter referred to as “the Judgment-Creditor”), initiated this suit by a Writ of Summons and Statement of Claim issued on 24th May 2019 against the Defendant/Judgment/Debtor, (hereinafter referred to as “the Judgment-Debtor”, to enforce its rights under a Lease Agreement dated 12th April, 2012, (hereinafter referred to as “the Lease), for the following reliefs:
i. The recovery of the sum of Eight Hundred and Eleven Thousand, Two Hundred and Sixty-Seven United States Dollars and Thirty-Three Cents (USD$ 811, 267.33), being the outstanding rent, service charge and car parking fees as of 28th September 2018.
ii. The recovery of One Hundred and Seventy-Three Thousand and Twenty-Eight Ghana Cedis, Sixty-Three Pesewas (GH¢178,028.63)
iii. Interest on (a) and (b) from 28th September 2018 till date of final payment at the prevailing banking rate.
iv. General damages for breach of contract
v. Costs on full indemnity basis.
vi. Any other order(s) this Honourable Court deems fit.
B. The matter was subsequently referred to arbitration in accordance with the parties’ chosen dispute resolution method under the Lease
C. An arbitral award was subsequently delivered in favour of the Judgment-Creditor on 5th March 2021 and thereafter on 22nd June 2021, the High Court, Accra, Commercial Division, gave an Order for the enforcement of the said arbitral award.
D. Pursuant to the aforesaid Order, the Judgment-Creditor filed a Notice of Entry of Judgment on 28th July 2021 and had same served on the Judgment-Debtor.
E. The Judgment-Creditor in execution of the aforesaid Order of the Court, cussed properties of the Judgment-Debtor including vehicles, machines, raw materials and finished products at the Judgment-Debtor’s factory and warehouse in Tema and Weija respectively to be attached on the 8th of June 2022.
F. Following the said attachment, the Judgment-Debtor, acting by its Lawful Representative, Mr. Li Li, approached the Judgment-Creditor and the Judgment-Creditor has agreed to compromise the aforesaid Order of the Court to enforce the arbitral award, by the reason of which the parties have agreed to execute these Terms of Settlement.
WHEREFORE THE PARTIES HEREIN have agreed as follows:
1. The Judgment-Debtor shall, in full and final settlement of the judgment debt, pay to the Judgment-Creditor, the