GHANA REVENUE AUTHORITY MINISTRIES, ACCRA VS SIC INSURANCE COMPANY LTD. RING ROAD EAST, ACCRA
2016
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE JENNIFER ABENA DADZIE
Areas of Law
- Contract Law
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The Plaintiff, a State Agency, sought to recover GH¢5,000,000.00 from the Defendant, an insurance company, over a bond guaranteeing payments for customs duties, which the Defendant failed to honor after the Principal Debtor's default. Despite multiple hearings and notices, the Defendant did not contest the case, leading to a judgment in favor of the Plaintiff for the bond amount and costs.
The Plaintiff is a State Agency established by an Act of Parliament with the responsibility to collect tax revenue for and on behalf of the Government of Ghana. The Defendant, on the other hand, is an insurance company registered under the laws of Ghana. The material facts which gave rise to the matter before me are stated in Plaintiff’s statement of claim as corroborated in material aspects by the testimony of Plaintiff’s witness, Mr. Samuel Bentil, and supported by the documentary evidence adduced by the Plaintiff in support of its case.
It is the testimony of Plaintiff’s witness that he is a Tax Administrator who has been working with the Plaintiff (from the then CEPS) for over twenty-seven (27) years. He testified that he is currently the Head of the Debt Management Section of the Debt Management, Compliance, and Enforcement Unit of the Office of the Commissioner General, Head Office, and the facts to which he testified came to his knowledge in connection with his duties as the Head of Debt Management of the Ghana Revenue Authority and its dealings with Novel Commodities Ghana Limited, a Customs Licensed Bonded Warehouse Operator.
According to Plaintiff, as part of the requirement for Novel Commodities Ghana Limited to obtain a license to engage in the business of bonded warehousing of goods under the Customs, Excise and Preventive Service (Management) Act, 1993, P. N. D. C. L. 330, as amended, it was required by the Plaintiff, as a condition precedent, to take out a bond guaranteeing payment in full of all revenue that would be lost to the State arising from the non-payment of customs duties, excise duties, and all other lawful taxes exigible on the goods warehoused under bond in the licensed premises.
To this end, Novel Commodities Ghana Limited executed a bond for the security of the goods warehoused in its premises for the period of 10th April 2013 to 9th April 2014 in the sum of Five Million Ghana Cedis (GH¢5,000,000.00) with the Defendant. The said warehouse bond was referenced as Bond No. P/102/41/4106/2012/3/Warehouse No. T/287. A copy of the bond agreement executed between the Defendant and Novel Commodities Ghana Limited was tendered in evidence by the Plaintiff and marked as Exhibit “A”.
It is the Plaintiff’s case that per the terms of the bond agreement, Defendant (hereinafter referred to as “Guarantor/Defendant”) irrevocably and unconditionally guaranteed for and on behalf of Novel Commodities Ghana Limited (hereinafter referred to as