IZONE GHANA LTD v. MR. GEORGE APPIAH KUBI
February 20, 2023
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP JUSTICE JUSTIN KOFI DORGU
Areas of Law
- Contract Law
- Commercial Law
February 20, 2023
HIGH COURT
GHANA
CORAM
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On or about the 4th of February, 2019, the Plaintiff herein, a limited liability company
incorporated under the laws of the Republic of Ghana to engage in the business of
selling, marketing and distribution of MTN products and services throughout the
Greater Accra Region took out the instant writ against the Defendant, a Ghanaian
businessman, trading under the name and style of Giant Media Enterprise for the
following reliefs;-
“(a) An order directing the Defendant to pay his outstanding debt of GH¢
100, 130.76 or in the alternative, an order for the enforcement of the Deed of
Assignment entered into on the 27th February, 2018
(b). Interest on the GH¢100, 130.76 from 2014 to date of final
payment at the prevailing commercial rate
(c). Cost including costs of litigation
(d). Any other order this Honorable Court may deem fit.
The Plaintiff supported his endorsement with an eighteen (18) paragraph
Statement of Claim, part of which I reproduced hereunder in no special order;-
3. The Plaintiff avers that somewhere in July 2011, the Defendant entered into a
sales arrangement with the Plaintiff as one of the Plaintiff's sub-dealer.
4. The Plaintiff further avers that under this contract, the Defendant was to
purchase MTN products from the Plaintiff and to present cheques after each
transaction.
5. The Plaintiff avers that the practice flowing from the agreement was to the
effect that the Defendant issued cheques for payment of goods requested and
supplied on the same day.
6. The Plaintiff further avers that the parties abided by the terms of their contract
until May 2014.
7. The Plaintiff avers that Defendant breached his agreement with the Plaintiff
between the period of May 2014 and September 2014 when the Defendant
presented eight cheques to the Plaintiff for goods requested and delivered but
all of the cheques were dishonoured.
8. The Plaintiff avers that the total value of cheques returned amounted to GH¢
182,601 and that the Plaintiff was subsequently forced to use Defendant’s
incentives for the months of May, June, August and September in 2014 to defray
part of the debt. He also made some additional cash payments in this same
timeframe.
9. The Plaintiff further avers that despite the Defendant's indebtedness to
Plaintiff, it continued trading with the Defendant in the belief that the
Defendant would pay his debt as and when he had some money while still in
business.
12. The Plaintiff avers that after the paymen
AI Generated Summary
This High Court civil judgment by Justice Justin Kofi Dorgu involves Izone Limited, a company that sells, markets, and distributes MTN products in Greater Accra, and the Defendant, a Ghanaian businessman trading as Giant Media Enterprise. Izone appointed the Defendant as a sub-dealer and the parties operated through cheque payments for supplied airtime inventory. Multiple cheques were dishonoured in 2014, leading to a repayment agreement and later an assignment arrangement whereby the Defendant agreed to assign his Sowutuom property interest upon default. The Defendant alleged unauthorized transactions, duress in executing the agreement, arbitrary blocking of airtime cards that allegedly collapsed eight shops, and a human rights breach related to detention. After evaluating witness statements from Izone’s CFO and Head of Audit and from the Defendant and his dispatch rider, the court found Izone’s account more probable. It held that dishonoured cheques evidenced breach, rejected the unauthorized-transactions and duress claims, found blocking to mitigate losses, dismissed the constitutional-rights claim as improperly invoked and unsupported, and entered judgment for GH¢100,130.76 with interest at the prevailing GCB PLC rate from 2014 and costs of GH¢10,000.