2021
SUPREME COURT
GHANA
CORAM
AI Generated Summary
The Supreme Court addressed a protracted land and commercial dispute involving contributors to the Anomanye Stores Complex in Kumasi and companies formed by their leaders—Gabbat Co. Ltd. and its successor, Asomdwee House Ltd. Traders and artisans on St Joseph’s Catholic JHS land levied funds, built shops, and later discovered a lease had been taken in Gabbat’s name. A 2008 settlement required replacing Gabbat with an inclusive company and transferring assets, but implementation excluded many contributors labelled “outsiders,” while tenancy agreements were executed in 2001–2002. The High Court and Court of Appeal recognized contributors’ equitable rights. On further appeal, the Supreme Court held that the contributors were beneficial owners under a constructive trust and could not be tenants in their own property; tenancy agreements with them were vitiated by common mistake and lease-term inconsistencies. The Court dismissed the appeal, ordered rectification of Asomdwee House Ltd’s register to include contributors, maintained genuine tenants’ status, and directed corporate compliance under Act 992.
JUDGMENT
PROF. MENSA-BONSU (MRS.) JSC:-
This is an appeal arising out of a case that has produced a multiplicity of suits. It arose out of a desire by a group of traders to regularize their stay on land and to formalize the acquisition of same, to create permanent structures for themselves.
BACKGROUND AND FACTS
Sometime in 1998, a group of traders and artisans plying their trade from kiosks they had erected on land belonging to a School, St Joseph’s Catholic Junior High School, approached the school and church authorities to regularize their stay. Following consultations between Kumasi Metropolitan Authority and the school, the traders were granted permission to remain on condition that they would build a bungalow to house the Headmaster; improve the School’s playing field; and build a Fence wall for the school. The group agreed, and proceeded to satisfy the conditions. In order to build their shops, they decided to levy themselves fixed sums of money to raise the needed funds. Those already in occupation or “occupiers” paid Ghc700, and “outsiders” ie those not already trading on the premises who came in to join upon invitation, were levied a slightly higher sum of Ghc 900. Later the contributions were increased to Ghc900 and Ghc 1,200 for the occupiers and “outsiders” respectively. In 1999, the group began construction of shops with the funds so levied. Lands Commission, Kumasi, stepped in after the chief of the area, petitioned them that the land was Stool land; and that some unauthorised development was taking place on it. Lands Commission stopped the development and consequently the group put together a delegation of four persons to resolve the issue with Lands Commission on behalf of the group. The members of the delegation were three of their number, Daniel Kwame Bonsu; Takyi Brefo; Akwasi Amanfo; and the fourth was the Assembly-member of the area, George Owusu-Afriyie, The delegation was successful and the Encroachment Committee of the Lands Commission, Kumasi gave permission for the development to continue, subject to the payment of a penalty imposed upon them for initiating the development without permission. The conditions were duly fulfilled, and construction resumed.
Later, information filtered through that the members of the delegation had clandestinely formed a company called ‘Gabbat Co Ltd.’ (also spelt ‘Gabat Co Ltd’) (a name coined from an initial each, of the names of the members of the delegation); and that it was in the name of thi