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JACK HAMELRIJK & ANOR v. NANIKRAM SHENAKRAM MUKHI

May 19, 2006

COURT OF APPEAL

GHANA

CORAM

  • ARYEETEY, JA [PRESIDING]
  • QUAYE, JA
  • ANIN YEBOAH, JA

Areas of Law

  • Corporate Law
  • Contract Law

AI Generated Summary

SEBSI Limited supplied pharmaceutical products to Pharco Ghana Limited in 1992 on credit, leading to a High Court judgment in Suit No. C.560/94 for DM 31,974 plus interest against Pharco. When the respondents could not execute against Pharco’s assets, they sued a director and former general manager personally, alleging he sold some goods and used proceeds to pay employees and distributed drugs to dismissed workers, and sought to lift the corporate veil. The High Court accepted veil piercing and passed Pharco’s debt to the appellant. On appeal, Quaye, JA found significant inconsistencies in respondents’ evidence, credited PW1’s account that the Superintendent Pharmacist and Board made decisions, and concluded the appellant did not negotiate or order the goods and no fraud was proven. Applying corporate law authorities and the Morkor v Kuma standard, the court refused to lift the veil, struck out an unproven DM 3,000, and allowed the appeal; Aryeetey, JA and Anin Yeboah, JA concurred.

JUDGMENT