INDGHA PACKAGING INDUSTRIES LTD. v. BARON WATER HOUSE LTD.
2023
CIRCUIT COURT
GHANA
CORAM
- HER HONOUR AFIA OWUSUAA APPIAH (MRS
Areas of Law
- Contract Law
- Commercial Law
- Civil Procedure
- Evidence Law
2023
CIRCUIT COURT
GHANA
CORAM
AI Generated Summary
The Circuit Court, presided over by Her Honour Afia Owusuaa Appiah, decided a commercial debt claim between a packaging-materials manufacturer and a company producing ice-pack water. Under a credit arrangement, the supplier delivered goods worth GHC1,061,119.43 during January–September 2020. The buyer paid GHC494,961.96, leaving GHC566,157.47 outstanding. The buyer admitted owing money but disputed quantity and quality, and claimed it would pay after resolving alleged defects. ADR efforts failed, and the buyer then failed to file witness statements or attend trial despite service. Applying the Evidence Act’s preponderance standard and burden rules, and noting the buyer’s failure to adduce any evidence, the court dismissed the defect assertions. Relying on PW2’s testimony and ledger invoices, the court held the debt proved and entered judgment for recovery of GHC566,157.47, interest at the prevailing bank rate from September 2020 until final payment, and costs of GHC10,000.
JUDGMENT
Plaintiff per their lawful attorney on 29/7/2021 instituted this suit against
Defendants herein and subsequently praying the court for the reliefs below:
a) An order for recovery of the sum of Five Hundred and Sixty-Six
Thousand, One Hundred and Fifty-Seven Ghana Cedis, Forty-Seven
Pesewas (GHC566, 157.47) which represents Defendant's indebtedness
to Plaintiff as at September, 2020.
b) Interest on the said amount at the prevailing commercial rate from
September 2020 until date of final payment.
c) Cost.
Plaintiff in their amended statement of claim pursuant to an order of the court
dated 8/3/2022 states that it is a limited liability company incorporated under the laws of Ghana carrying on businesses including manufacturing of
packaging materials whilst Defendant is a limited liability company in the
business of producing Ice pack water. Plaintiff’s case is that based on a
mutual agreement, Plaintiff was supplying packaging materials on credit
basis to Defendant. From the period of January 2020 to September 2020,
Plaintiffs supplied Defendants with some quantities of packaging products
amounting to GHC1,061,119.43 out of which Defendants made payment of
GHC494,961.96 leaving GHC566,157.47 outstanding as at 23rd September,
2020. Plaintiffs averred that Defendant had failed to pay the said amount
despite several demand made on them.
Defendant in their Amended statement of defence admitted receipt of goods
and products from Plaintiffs but on various occasions up to September 2020
but contended that the goods supplied were not up to the quantity and
quality agreed to between the parties hence their decision to make part
payment of GHC494,961.96. Defendant admits owing Plaintiffs but not to the
tune of GHC566157.47 and contended that they were awaiting the resolution
of the issues of defect as to quality and quantity of the goods supplied in
order to make the due outstanding balance but the issues remain unsolved.
Defendants contended further that they would only make payment of the
outstanding when all issues are resolved between them.
Parties were referred to the Alternative Dispute Resolution Centre for
settlement but same was unsuccessful.
The following issues where therefore set down as issues for trial
a. Whether or not the goods, the subject matter of this suit measure up to
the quality and quantity of the agreement.
b. Whether or not the Defendant is indebted to the Plaintiff in the sum
endorsed on the writ