KEN KWAME ASAMOAH v. STATE INSURANCE COMPANY

AMEGATCHER JSC:-

INTRODUCTION

On the 18th of January 2022, we allowed the appeal in this matter and reserved our reasons to be filed within 21 days. We proceed now to give the reasons for our decision.

The significance of this appeal lies in the determination of the legal effect of payment of a judgment debt into court. Does the payment of a debt or judgment debt into court discharge the payer or judgment debtor from all further liabilities under the judgment to the payee or judgment creditor? The appellant says it does while the respondent says it does not. Though, what is before us is an interlocutory appeal arising from the refusal of the Court of Appeal to grant a suspension of the entry of judgment/or stay of proceedings of execution pending appeal, we are of the opinion that to avoid multiplicity of suits and save the parties from further expense and time in unnecessary and unwarranted litigation, this post-judgment interlocutory matter must be determined by us exercising our powers under article 129(4) of the Constitution.

BRIEF FACTS

The appellant is an insurance company while the respondent was the assured of the appellant. The substantive dispute which brought the parties to court had to do with a comprehensive insurance taken by the respondent from the appellant to cover a Chevrolet Sports Car imported into the country. The car was snatched from the wife of the respondent. The respondent, therefore, put in a claim for Ghc116, 200.00 being the insured value of the car. When the appellant repudiated liability, the respondent commenced an action at the High Court for that sum plus interest at the commercial rate till the date of payment.

On 25th June 2014, the High Court delivered judgment in favour of the respondent. Dissatisfied, the appellant appealed to the Court of Appeal and filed an application for a stay of execution. The Court of Appeal on 25th November 2014 granted the stay on terms and ordered the appellant to pay the entire judgment debt made up of Ghc116, 200.00 principal and Ghc138, 278.00 interest into court within 30 days from the date of the order. The Court directed this money to be invested by the Registrar of the Court into an income yielding investment in accordance with the standing directions regarding money’s ordered to be paid into court by the Courts. The Court of Appeal further ordered the appellant to pay the respondent the costs of Ghc8, 000.00 awarded by the High Court. This order was complied with by the appella