LARTEY AND LARTEY LTD. v. BEANY AND ANOTHER

JUDGMENT OF CECILIA KORANTENG-ADDOW J.

This is an application under Order 25, r. 4 of the High Court (Civil Procedure) Rules 1954 (L.N. 140A) and the inherent jurisdiction of the court:

"praying for an order that all further proceedings in this action be stayed and that the action be dismissed on the grounds of res judicata, and [on the ground] that the [action] is frivolous, vexatious and an abuse of the process of the court."

The reliefs sought are as follows:

"(a) a declaration that Sweaters and Socks Factory Ltd. belongs and shall remain the property of Lartey and Lartey Ltd., the Gaisie Committee of 4 September 1975 and subsequent judgments/orders of the High Court dated 6 May 1976 and in suit No.67/78 dated 22 February 1978 being void ab initio, as the special tribunal in its ruling of 23 May 1980 held that the Gaisie Committee lacked jurisdiction to investigate Sweaters and Socks Factory Ltd.;

(b) recovery of possession of Sweaters and Socks Factory Ltd., from the second defendants;

[p.597]

(c) an order for an account; and

(d) perpetual injunction against the defendants, their servants or agents or workmen from having anything to do with Sweaters and Socks Factory Ltd."

From the statement of claim, affidavits filed on both sides and documents exhibited to the application, the circumstances which culminated in this action may be stated as follows: The first defendant is a Lebanese resident in Ghana, but now naturalised. He was a shareholder and managing director of Sweaters and Socks Factory Ltd. Some time in 1973, the plaintiffs (Lartey and Lartey Ltd.) agreed with the owners of Sweaters and Socks Factory Ltd. to purchase the factory of Sweaters and Socks. The plaintiffs applied for a loan from the National Investment Bank to enable them to pay the purchase price. This application was transmitted to the bank by the National Redemption Council.

At the time Mr. Daniel Lartey, owner of Lartey and Lartey Ltd., was a friend of the then Head of State, Colonel I. K. Acheampong (as he then was) and he Mr. Lartey was working at the Castle. Consequently the application was highly recommended by the government. In June 1974 the loan agreement was approved. The purported sale agreement was executed in July 1974. At the request of Lartey and Lartey Ltd. the loan of ¢580,000 was disbursed by the National Investment Bank to Barclays Banks of Ghana Ltd., Knutsford Avenue Branch, for the account of Sweaters and Socks Factory Ltd. in exchange for all