2018
HIGH COURT
GHANA
CORAM
AI Generated Summary
This case involves a contract dispute between a fuel supplier (Plaintiff) and a buyer (Defendant). The Plaintiff supplied Diesel to the Defendant on credit, as per their Supply Agreement dated March 22, 2017. The Defendant failed to pay for the fuel within the agreed 30-day credit period, accumulating a debt of GHC 122,651.74 including interest. The Plaintiff filed a lawsuit on April 25, 2018, seeking recovery of the debt, interest, and costs. The Defendant was served but failed to enter an appearance. Consequently, the Plaintiff filed for a default judgment, which the court granted. The court ordered the Defendant to pay the full amount owed (GHC 122,651.74), plus interest at the Bank of Ghana rate from December 13, 2017, until final payment, and costs of GHC 4,000.00. This case demonstrates the legal consequences of failing to respond to a lawsuit and the enforcement of contractual obligations in commercial transactions.
The Plaintiff on 25th April, 2018, instituted the instant action against the Defendant for the following reliefs:
i. Recovery of the sum GHC 122, 651. 74, being the amount owed the Plaintiff by the defendant;
ii. Interest on the amount of GHC 122, 651. 74 at the prevailing rate of the Bank of Ghana from 13 December 2017 till the date of the final payment;
iii. Costs, including solicitors fees;
iv. Any other order(s) as the Court may deem fit.
The gravamen of the Plaintiff’s case is found in paragraphs 3 to 14 of the Statement of Claim as follows:
The Plaintiff states that by a Supply Agreement dated March 22 2017, the Plaintiff agreed to supply fuel (Diesel) to the Defendant on credit basis.
Accordingly, the Plaintiff supplied and the Defendant took delivery of Diesel at the Plaintiff’s Takoradi and Tema Oil Refinery (TOR) Depots in the following: -
On 29th March, 2017, 13, 500 litres of Diesel, valued at GHC 54, 675. 00; -On 7th April, 2017, 4, 500 litres of Diesel, valued at GHC 17, 505. 00; -On 12th April, 2017, 9, 000 litres of Diesel, valued at GHC 34, 650. 00. The Plaintiff further states that the total value of Diesel supplied to the Defendant by the Plaintiff totalled GHC 106, 830. 00. According to the Plaintiff, by the agreement between them, payment for the deliveries was to be made within 30 days from the date of supply, with the further understanding that failure to pay any outstanding sum in full within the agreed 30-day credit period would attract interest at the prevailing Bank of Ghana rate.
The Plaintiff states that following the 30-day periods, payment for the Diesel supplied on 29th March 2017, 7th April, 2017 and 12th April, 2017, became due on 28th of April, 2017, 7th May, 2017, and 12th May 2017, respectively.
The Defendant has since defaulted in payment, thereby attracting interest to the tune of GHC 15, 821. 74 on the outstanding sum, as at 13th December, 2017. The Plaintiff states that by a letter dated 13th December, 2017, it demanded payment of the total debt of GHC 122, 651. 74, inclusive of interest, which the Defendant has failed and or refused to settle in breach of the terms of their contract.
Hence, the instant action.
The Writ of Summons and Statement of Claim, per the Court records, were served on the Defendant on 24th May, 2018. The Defendant has to date failed to enter appearance.
The Plaintiff, as Applicant, on 26th October, 2018, filed a motion ex parte for final judgment against the Defendant for failing