SEA GULL COMPANY VS EBOW THEODORE ESSANDOH & 3 ORS
2015
HIGH COURT
GHANA
CORAM
- PATIENCE MILLS TETTEH (MRS.), J
Areas of Law
- Contract Law
- Corporate Law
- Civil Procedure
2015
HIGH COURT
GHANA
CORAM
AI Generated Summary
This case involves a motion for judgment on admissions filed by a subcontractor (plaintiff) against Gecad Incorporated and Gecad Ghana Limited (defendants) for the release of preserved funds. The plaintiff claimed the defendants admitted their indebtedness for work done on a power plant project. The court examined various exhibits and testimonies to establish the relationship between Gecad Incorporated and Gecad Ghana Limited, finding them to be principal and agent respectively. The court determined that the defendants had indeed admitted their indebtedness to the plaintiff and that the preserved money belonged to Gecad Incorporated. Consequently, the court granted the motion for judgment on admissions, ordering the release of GHC 356,224.00 to the plaintiff from the funds held by the official liquidator. The case highlights principles of agency law, corporate relationships, and the use of admissions in civil proceedings.
This is a motion on notice for judgment on admissions and an order for the release of money preserved by the official liquidator in compliance with preservation order of this court differently constituted. The plaintiff/applicant is one of the subcontractors commissioned by the defendants/respondents to build a power plant for VRA. The defendants sued VRA in this Court and obtained judgment. The money, subject matter of this application was paid after that judgment. The defendants having admitted their indebtedness to the plaintiff/applicant, it is the case of plaintiff/ applicant that the money so preserved should be released to them in settlement of the debt owed.
The substantive suit claiming the total sum was instituted on 5/11/14 with the following reliefs;
1. An order that the defendants pay to the plaintiffs the sum of US$1,079,626,.61 being the outstanding balance for the construction works in the development of Tema Thermal 1 power project
2. Interest on the said sum from 5th May 2009 to the date of final payment or alternatively
3. An order lifting the veil of incorporation of the 2nd and 3rd defendant companies to make the 1st defendant personally liable for the 2nd and 3rd defendant indebtedness to the plaintiffs,
Parties have filed pleadings and settled on issues.
The plaintiff on the 29/7/2015 filed this motion for judgment on admissions for an amount of GHC 356224.00. The affidavit in support attached to the motion and deposed to by the financial manager of the plaintiff company stated among others that on the 5/11/2014 plaintiff claimed an amount of USD1079626.16 being the outstanding balance owed them. Plaintiff averred that by a document dated 5/5/2009 and executed by 1st defendant the 2nd defendant admitted their indebtedness to the plaintiff in the said amount of USD 1,079626.16. The document, evidence of their indebtedness was attached to the application marked exhibit A. Plaintiff further submitted that defendants admitted their indebtedness by informing them that they have instituted a legal action against the VRA to recover payment to enable them settle their said indebtedness to them. Plaintiff attached copies of a letter from Ministry of Energy to 2nd defendant marked “B”, the memorandum of understanding for
the said project marked “C” the document in which the 2nd defendant clearly acknowledged the indebtedness to the plaintiff marked “D” and a document from their financiers marked “E”. Plaintiff therefore prayed the co