JADBRANSKA SLOBODNA PLOVIDRA, SPLIT v. OYSA LTD.
1978
HIGH COURT
GHANA
Areas of Law
- Alternative dispute resolution
- Conflict of Laws
- Corporate Law
- Commercial Law
- Maritime Law
1978
HIGH COURT
GHANA
AI Generated Summary
Jadbranska Slobodna Plovidba, a Yugoslav shipowner, chartered its vessel M.V. Matija Gubec to OYSA Limited under a BIMCO time charterparty signed in Hamburg, written in English, and containing a clause for London arbitration. After OYSA repudiated the charter, a London sole arbitrator, acting under section 7(b) of the English Arbitration Act 1950, awarded damages to the owners on claim (a) and rejected claim (b). The owners sought leave in Ghana to enforce the award under the Arbitration Act 1961. OYSA argued it was not incorporated when the charter was signed, that Horst Tessendorf lacked authority, and that no ratification occurred. Amua-Sekyi J. held that the law most closely connected to the contract is English law, under which a company cannot ratify a pre-incorporation agreement. Even if Ghanaian law applied, section 13 of the Companies Code requires a clear corporate act, which was absent. The court dismissed the enforcement application with costs.
JUDGMENT OF AMUA-SEKYI J.
The claimants are a company registered under the laws of Yugoslavia. The respondents are a limited liability company registered under the laws of Ghana. On 29 August 1976 the claimants, as owners, and the respondents, as charterers, entered into a time-charterparty under which the claimants let and the respondents hired the claimants' vessel M.V. Matija Gubec for one West African round voyage of about 45 to 55 days without guarantee. The agreement was signed in Hamburg on behalf of the owners by their agents and on behalf of the charterers by brokers on the authority of their European representative, Horst Tessendorf. It is in the English language and in the form approved by the Baltic and International Maritime Conference. Clause (23) of the charterparty provided for arbitration in London in case of dispute.
A dispute did in fact arise following the repudiation of the charterparty by the respondents. It seems that after the repudiation of the charter party one. Captain Tanko Gomulin, manager of the claimants, came to this country and had discussions with the respondents. Following this visit, the respondents' managing director, Emmanuel Bulley Larmie, wrote a letter to the claimants asking them to submit a statement of account an indicating that the respondents would settle what was due in Ghana currency through the claimants' local agents, Scanship (Ghana) Ltd. In view of the construction which is now sought to be placed on this letter, I reproduce it infull hereunder:
"OYSA LIMITED
P.O. Box 7997,
Accra.
28 January 1976
Tel 24501
Your Ref..........
Our Ref. SH 2/6/76.
The Manager,
Jadbranska Slobodna Plovidba,
Split,
Yugoslavia.
ATTN. CAPT. TANKO GOMULIN.
Dear Captain Gomulin,
STATEMENT OF ACCOUNT
You will recall that during your short visit to Ghana you indicated to me that on your return home you would furnish us with statement of account.
We are anxious to ascertain the extent of our indebtedness to your firm following the withdrawal of your ship the M.V. Matija Gubec which was then on charter to us. As agreed, we shall settle [p.132] is due in local currency through your agents, Scanship (Ghana) Ltd.
Yours faithfully
For: OYSA LIMITED
(Sgd.) E. B. Larmie.
Managing Director.
cc: Mr. Tilimann,
Ahlmann Transport KG
B-2000 Hamburg II,
West Germany.
The Manager,
Scanship (Ghana) Ltd.,
P.O. Box 1703,
Accra."
It does not appear that the claimants honoured their part of the agreement alleged to have