LARRY ETTAH v. WONDA WORLD PROPERTY LTD. AND NANA KWAME BEDIAKO

J U D G M E N T

NOVISI ARYENE JA:

Section 6 of the Alternative Dispute Resolution Act 2010, (Act 798) provides:

(1) Where there is an arbitration agreement and a party commences an action in court,

the other party may on entering appearance, and on notice to the Party who

commenced the action in court, apply to the court to refer the action or a part of the

action to which the arbitration agreement relates, to arbitration.

(2) The court on hearing an application made under subsection 1, shall, if satisfied that

the matter in respect of which the application has been made is a matter in respect of

which there is an arbitration agreement, refer the matter to arbitration.

(3) The grant of an application shall serve as stay of the proceedings in the court.

This is an appeal against the Ruling of the High Court (Commercial Division) delivered

on 6th of May 2022, dismissing the application for stay of proceedings in suit no

CM/RPC/0306/2022. Appellants’ prayer before us is for an order setting aside the said

ruling and to stay the proceedings, and a further order for the matter to be referred to

arbitration as per the arbitration clause in the agreement between the parties.

Events culminating in the instant appeal are that, sometime in December 2017,

respondent invested a total amount of USD1,343,750.00 in two projects (the Kwarleyz

Apartment and the Vynyard Apartment), the construction of which was being

undertaken by 1st appellant, a real estate development company. Per the terms of the

agreement, Respondent was to receive an investment appreciation of 25% on the

Kwarleyz Apartment and 20% on the Vynyard Apartment by November 2019. 2nd

appellant, the owner of 1st appellant company, undertook to personally pay the

investment appreciation interest accruing on respondent’s investment. Respondent

averred per his statement of claim that appellants made some part payment on the

investment but defaulted leading to the restructuring of the terms of the agreement.

Per the terms of the restructured agreement dated 1st November 2019, appellants

undertook to pay respondent a cumulative amount of USD981,875.00 on or before 1st

November 2020. 1st appellant used its two townhouses (of four bedrooms each) situate

at Ringway Estates Accra, as security for the restructured agreement.

Sometime in February 2021, appellants made part payment of USD300,000.00 out of the

amount due but has failed to pay the outstanding balance of USD681,875.00 despite