Nowfill S. Laba v. Aid S. Laba & anor

The Court of Appeal, per Torkornoo, JA, dismissed an appeal arising from internal corporate disputes at Latex Foam Rubber Products Ltd between equal shareholders and directors, the appellant (managing director) and his late brother, Aid S. Laba (board chairman). After the High Court issued broad injunctions to preserve the status quo, Aid S. Laba died and was substituted by his son, Wissam. The appellant and his son, Richard Laba (then secretary), appointed Richard as director and chairman and engaged in banking resolutions, prompting a contempt application. On appeal, the appellants argued no prima facie case, exceeded jurisdiction under Order 50 rule 3, lack of willfulness, and insufficiency/weight of evidence. The Court held that Order 50 rule 3 confines applicants to grounds across the entire affidavit, and read with Order 50 rule 2, permits protection of justice administration; company Regulations 58 and 59 demanded general meeting action; the death did not render orders inapplicable; and the actions violated the injunction. All grounds failed; conviction and costs were affirmed.