GLAMOROUS DIVINE AUTO AND TRADING LIMITED vs ALEX NYARKO AKOTO & ANOTHER
2023
HIGH COURT
GHANA
CORAM
- HER LADYSHIP, JANE HARRIET AKWELEY QUAYE (MRS.)
Areas of Law
- Contract Law
- Corporate Law
- Evidence Law
- Civil Procedure
- Property and Real Estate Law
2023
HIGH COURT
GHANA
CORAM
AI Generated Summary
This High Court dispute arises from a fiveyear Washing Bay Lease Agreement executed on 6 December 2018 between Glamorous Divine Auto and Trading Limited and Alexander NyarkoAkoto of Top Class Ventures, later extended by an addendum for a canteen near Lashibi Funeral Home. Plaintiff paid advance rent and made substantial investments in structures and equipment while defendants interfered with utilities and sought to terminate by a 31 July 2019 letter, proceeding in the District Court to restrain operations. At trial, plaintiffs representative admitted the company was unregistered when the lease was signed; documents showed incorporation on 9 August 2019. Applying Companies Act 2019 and authorities on preincorporation contracts and fraud, the Court found deliberate misrepresentation regarding corporate status and identity, held defendants could lawfully terminate, dismissed plaintiffs claims, declared the lease a nullity for fraudulent misrepresentation, ordered rent payments at GH2,500 per month to 31 July 2023, directed handover of the property by that date, awarded GH10,000 general damages to defendants, and assessed GH5,000 costs.
By an amended Writ and Statement of Claim filed on 10th March, 2021 at the Registry of this Court, the Plaintiff mounted this action claiming against the Defendants jointly and severally as follows:
a. A Declaration that the purported termination by the Defendants of the commercial business agreement (Washing Bay Lease Agreement) dated 6th December, 2018 including the Addendum dated 28th December, 2018 is unLawful, a nullity, void and of no effect.
b. A Declaration that the Defendants’ persistent interference with Plaintiff’s management of the washing bay facility and disruption of Plaintiff’s business activities on the property located near the Lashibi Funeral Home is unLawful, amounts to inducing breach of contract and tenant to quit, and generally breaches the Washing Bay Lease Agreement of 6th December, 2018.
c. An Order of perpetual Injunction restraining the 1st and 2nd Defendants either by themselves or whosoever acting by or through them from entering upon the business premises of the Plaintiff or otherwise interfering with the Plaintiff's running and management of the Washing Bay and any other part of the property let out under the Washing Bay Lease Agreement of 6th December, 2019 and the Addendum thereto dated 28th December, 2019 during the term, of the Agreement.
d. Special and General Damages for unLawful interference and closure of Plaintiff's business.
e. Cost including legal cost.
The Case of Plaintiff
The Plaintiff is a company incorporated under the Laws of Ghana. The 1st Defendant is a business man who operates under the name and style of Top Class Ventures and 2nd Defendant as his son who at all material times relevant purported to act as 1st Defendant’s Attorney. On the 6th of December, 2018, the 1st Defendant acting as the CEO of Top Class Ventures entered into a commercial business agreement (Washing Bay Lease Agreement) with the Plaintiff for the leasing of his Washing Bay Business and its adjoining land for the Plaintiff to take over the day to day management of the 1st Defendant’s defunct washing bay and additionally operating an auto mechanic shop. Sequel to the Washing Bay Lease Agreement (Principal Agreement), the 1st Defendant executed an Addendum to the Principal Agreement to let out a canteen area at an extra charge of GH¢ 2,400.00 to facilitate the business of the Plaintiff. Both the principal agreement and the Addendum was witnessed by the 2nd Defendant. The Washing Bay Lease Agreement was for a term of five (5) yea