KIJANI RESOURCES GHANA LTD. 2ND CIRCULAR ROAD CANTONMENTS, ACCRA vs GHANA CHEMICALS LTD. & ANOR
2016
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE AKUA SARPOMAA AMOAH (MRS.) HIGH COURT JUDGE
Areas of Law
- Contract Law
- Evidence Law
- Civil Procedure
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The Plaintiff, a Limited Liability Company, pursued claims against the Defendants for the payment of GH¢2,720,000 for ENA supplied under a sale and purchase agreement, interest on the amount, and general damages for breach of contract and fraud. The Defendants did not file a defense, resulting in a default judgment. The Court awarded the Plaintiff the amount of GH¢2,720,000 plus interest starting January 8, 2016, general damages for breach of contract amounting to GH¢662,200, and costs of GH¢20,000. However, the Plaintiff’s claim for damages for fraud was not substantiated and thus was dismissed. The judgment was based on principles related to damages, general damages, breach of contract, and standards of proof in civil cases alleging criminal acts.
The Plaintiff, a Limited Liability Company incorporated under the laws of Ghana by the endorsement on her Writ of Summons is claiming the following against the Defendants jointly and severally:
i. An order for the payment of the sum of Two Million, Seven Hundred and Twenty Thousand Ghana Cedis (GH¢2, 720, 000. 00) being the cost of Extra Neutral Alcohol (ENA) supplied to the 1st Defendant by the Plaintiff
ii. Interest on (i) at the prevailing bank rate from 8th January 2016 till date of final payment
iii. General damages for breach of contract evidenced by 1st Defendant’s conduct in terms of the sale and purchase agreement between the parties hereto dated the 8th of January,
iv. General damages for fraud evidenced by the 2nd Defendant’s conduct particularized in paragraph 16.
iv. Punitive costs.
The Defendants entered appearance to Plaintiff’s writ but failed to file a defence.
Default Judgment was therefore entered against them on the 22nd day of December 2015 in respect of Plaintiffs reliefs (i. ) and (ii. ) and the matter adjourned for the assessment of damages.
Again, on the 24th of February 2016, the Defendants even though having been served duly served with hearing notices for the assessment of damages failed to appear by themselves or by their counsel.
This Court therefore proceeded to hear Plaintiffs evidence in proof of its claim for damages.
Godwin Frazer, Plaintiff’s representative testified on behalf of Plaintiff, he stated that he, as the Commodity Manager of the Plaintiff Company, entered into a sale and purchase contract with the Defendants on the 8th day of January 2016 for the sale of One Million (1, 000, 000)litres of Extra Neutral Alcohol (hereafter referred to as ENA) to the Defendants.
The evidence of Plaintiff’s representative was essentially in line with Plaintiff’s pleadings.
In proof of Plaintiff’s claim for damages for breach of contract, the witness tendered in evidence as EXHIBIT A the sale and purchase agreement entered into between the Parties to the suit.
Clauses C and D OF EXHIBIT A stipulate that the 1st Defendant, represented by the 2nd Defendant, at the time of execution of the contract had satisfied the condition precedent for obtaining the Plaintiff’s consent to enter into the said contract by securing a guarantee bond for the sum of Two Million, Seven Hundred and Twenty Thousand Ghana Cedis(GH¢2, 720, 000. 00) issued in favour of Plaintiff.
According to Plaintiff’s representative, the guarantee bond was t