JUWEL ENERGY LIMITED vs LILY GOLD OIL LIMITED
2019
HIGH COURT
GHANA
CORAM
- HER LADYSHIP, JUSTICE GIFTY AGYEI ADDO, HIGH COURT JUDGE.
Areas of Law
- Civil Procedure
- Commercial Law
- Contract Law
2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
This case involves a commercial dispute where the Plaintiff supplied the Defendant with Automotive Gas oil and the Defendant failed to pay the full amount owed. The Plaintiff filed a suit for the recovery of the outstanding amount, interest, and costs. The Defendant failed to enter an appearance after being served with the court documents. The Plaintiff then filed for a default judgment. The court, after considering the evidence and the Defendant's failure to appear, granted a final judgment in favor of the Plaintiff. The court ordered the Defendant to pay the outstanding amount of GH₵380,400, interest at the prevailing commercial bank rate from the date the amount became due until the date of judgment, and costs of GH₵7,000. This case demonstrates the legal consequences of failing to respond to a lawsuit and the court's power to grant default judgments in such circumstances.
The Plaintiff on - 13th December, 2018 mounted this suit against the Defendant for the following reliefs:
i. An order for the recovery of the principal sum of Three Hundred and Eighty Thousand Four Hundred Ghana Cedis (GH380, 400) being the arnount owed by the Defendant to the Plaintiff.
ii. Interest on the amount stated in relief (i) at the prevailing commercial bank rate from the date of first default till the date of judgement. . . . .
Ill. Costs
iv. Any further orders this Honorable Court may deem fit.
The gravamen of the Plaintiff's claim is contained in paragraphs 3 to 10 of the Statement of Claim, a summation of which is as follows: According to the Plaintiff, on or about the 17th of December, 2017, it supplied the Defendant with 270, 000 litters of Automative Gas oil at a total cost of Six Hundred and Eighty Thousand Four Hundred Ghana Cedis ( GH$680, 400).
The Plaintiff further avers that the Defendant issued for the payment of its debts a cheque of Six hundred and Eighty-Two Thousand Five Hundred and Sixty Ghana Cedis(GH$682, 560) on 16th January, 2018. The Plaintiff further says that the cheque issued by the Defendant was dishonored on five different occasions namely: the 17th, 18th, 22nd, 30th and 31St days of January, 2018 by the First Trust Savings and Loans limited.
The Plaintiff continues that after repeated demands for the, payment of its indebtedness, the Defendant issued another cheque from the same financial institution, the First Trust Savings and Loans Limited, with a face value Of Six Hundred and Eighty Two Thousand Five Hundred and Sixty Ghana Cedis (GH$682, 560) on 5th February, 2018. That same was dishonoured on the 5th and 6th February, 2018. The Plaintiff contends that as at loth October 2018, the outstanding amount had attracted an interest of One Hundred and Sixteen Thousand Four Hundred and Seventy-Nine Ghana Cedis (GH$116, 479. 79), bringing the total money owed by the Defendant to it to Four Hundred and Ninety Nine Thousand and Thirty Nine Ghana Cedis and Seventy Nine Pesewas (GH $499, 039. 79). According to the Plaintiff, after repeated demands, the Defendant paid an amount of Three Hundred Thousand Ghana Cedis (GH4300, 000. 00) and has neglected and or refused to pay the outstanding amount including the interest computed on same at the prevailing rate of the commercial bank in accordance with the trade practice, for the delayed payment.
The Plaintiff concludes that the Defendant has failed, neglected and or refuse