M/S KEHENTSON COMPANY LIMITED SUNYANI VS THE ATTORNEY-GENERAL
2024
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP JUSTICE HARRY ACHEAMPONG-OPOKU ESQ.
Areas of Law
- Contract Law
- Civil Procedure
- Evidence Law
- Administrative Law
2024
HIGH COURT
GHANA
CORAM
AI Generated Summary
The High Court (Justice Harry Acheampong‑Opoku) adjudicated a contractual payment dispute arising from the Government of Ghana’s engagement of the plaintiff to bitumen‑surface the Duayaw Nkwanta–Adagaming–Santase feeder road (10.0 km) under Contract No. DFR/BAR/GOG/RF/RT/SURF/2016/01. The plaintiff said it completed portions of the works, prompting the Department of Feeder Roads to issue interim payment certificates Nos. 2, 3, and 4, which were forwarded to the Ghana Road Fund Secretariat. Despite following the governmental administrative process and serving the mandatory 30‑day notice under section 10(1) of Act 555, the outstanding certified amounts—GH 537,386.32, GH 592,200.05, and GH 58,436.39—remained unpaid. The defendant argued for bureaucratic prerequisites, alleged non‑completion, and claimed an arbitration requirement. On the evidence, including cross‑examination confirming a 90‑day payment window and the absence of an arbitration clause in exhibit A, the court resolved the key issues for the plaintiff, awarded interest under Rule 1 of C.I. 52, and assessed costs of GH 118,802.00.
The plaintiff in this case claim against the Defendant, the following reliefs;
(1) Recovery of the total amount of Ghc1, 188, 022. 76 being the outstanding amounts payable under the certificates as follows; (a) Ghc537, 386. 32 being an outstanding amount and payment certificate Number 2 due and payable to the plaintiff for the execution of a contract involving Bitumen surfacing of the Duayaw-Nkwanta – Adagaming - Santase Feeder Road (10. 0 km)with certificate Number 2 and with contract Number DFR BAR/GOG/RF/RT/SURF/2016/01 and which said amount became payable in November 2017 but which said amount the defendant has failed/refused to pay despite several demands.
b) Ghc592, 200. 05 being outstanding amount and payment certificate Number 3 due and payable to the plaintiff for the execution of a contract involving Bitumen surfacing of the Duayaw-Nkwanta – Adagaming - Santase Feeder Road(10. 0km)with contract Number DFR/BAR/GOG/RF/RT/SURF/2016/01 and which said amount became payable in December 2018 but which said amount the defendant has failed/refused to pay despite several demands.
c) Ghc58, 436. 39 being outstanding amount and payment certificate Number 4 due and payable to the plaintiff contract involving Bitumen surfacing of the Duayaw Nkwanta –Adagaming – Santase Feeder Road (10. 0 km) with certificate number 4 and with contract number DFR/BAR/GOG/RF/RT/SURF/2016/01 and which said amount became payable in February, 2021 but which said amount the defendant has failed/refused to pay despite several demands.
Interest on the amounts stated in relief 1(a) from 02/11/2017, 1 (b) from 22/12/2018and 1 (c) from 27/02/2021 at the prevailing commercial rate until the date of final payment.
10% cost on the amount contained in relief 1 supra including legal fees.
Facts of case It is the case of the plaintiff that the Government of Ghana awarded it contract (Bitumen Surfacing of Duayaw Nkwanta – Adagaming –Santase Feeder Road (10. 0 km) with contract Number DFR/BAR/GOG/RF/RT/SURF/2016/01) through the Ministry of Roads and Highways and the Department of Feeder Roads.
Plaintiff further contends that it had duly executed its side of the contract and following that, payment certificates were raised in its favour by Department of Feeder Roads in respect of the contract and same were forwarded to the Road Fund Secretariat for payment.
Plaintiff also says that despite going through all the necessary requirement for the payment of the various amounts borne out i