OIL TEST SERVICES LIMITED v. SALTPOND OFFSHORE PRODUCING CO. LTD.

HONYENUGA, J. A.

This is an appeal by the defendant/appellant from the decision of the High Court, Tema dated the 10th day of December, 2008. The said Court ordered the defendant/appellant to pay the sum of US$977, 308. 18 being the amount due and owing to the plaintiff for services rendered to the defendant.

The Court also decreed that the payment sum of US$92, 165. 59 being interest on the principal sum and finally, a further interest of 5% per annum on the same principal sum from 11th December 2008 to the date of judgment against the defendant.

The facts of this appeal are that the plaintiff/respondent whom I shall hereinafter refer to as the respondent is a limited liability company registered in Nigeria and carries on the business of oil and gas as well as testing services among others.

The defendant whom I shall hereinafter refer to as the appellant is a limited liability company in Ghana and carries on the business of oil exploration among others.

By an agreement entered between the parties on the 21st June 2000, the respondent bound itself to render some services to the appellant.

The respondent did rendered the services to the appellant and delivered at the appellant’s area of operation.

By the 18th September 2002, the sum due from the services stood at US$977, 308. 18 with interest at the rate of 5% per annum.

By further terms of the contract, the parties agreed that disputes which they were unable to resolve amicably were to be referred to Arbitration.

The appellant defaulted in paying for the services as agreed and as a result and by the terms of the contract, several meetings were brokered for the appellant to honour his side of the contract.

At the last meeting of the parties in Ghana, the appellant proposed to pay the sum of US$889, 500. 04 to the respondent in quarterly instalments of US$120, 000. 00 until the total indebtedness is liquidated.

The respondent later by a letter from her Solicitors requested that the quarterly instalments be increased to US$180, 000. 00. The appellant had earlier admitted her indebtedness as US$537, 396. 05. Accordingly, the respondent referred the matter to Arbitration in Nigeria.

The appellant agreed and initially participated in the arbitration but latter resiled.

The appellant then filed an originating summons in the High Court, Lagos to contest the appropriateness of referring the matter to arbitration.

However, the said Court ruled against the appellant to the effect that there was an issue