2021
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
Stephen Kojo Adrah obtained default judgment against Gold Coast Fund Management Ltd to recover GHC3,722,822.26 and interest on his investments. In executing the judgment, the High Court issued a Garnishee Nisi directed to Zenith Bank that treated Gold Coast Fund Management Ltd as “otherwise called Ghana Gold Coast Fund Company and also Gold Coast Advisory Company” and identified account number 0006010148243. Gold Coast Advisors Company Ltd, which was not a party to the suit, intervened and said the account was its own, but the trial judge dismissed the application, granted Garnishee Absolute and added a call account 1060103176, without examining the garnishee and despite the judge’s later demise preventing a detailed ruling. On appeal, Justice Victor Ofoe, writing for the Court of Appeal, held that Gold Coast Advisors was a separate legal entity, merely a shareholder (via its predecessor Ghana Growth Fund Ltd), with no evidence of joint operations or funds tracing, and that the High Court breached garnishee procedure. The Court set aside the orders and allowed the appeal.
OFOE, J.A
The issue in this appeal, which indeed was the issue before the trial High Court, is whether the Claimant/Appellant, Gold Coast Advisors Company is the same as Gold Coast Fund Management Ltd, the defendant who was before the trial High Court, and for which reason it should be held liable for the debt of the defendant. The trial High Court Judge gave Bench ruling on the issue but could not give the promised detailed ruling before his unfortunate demise. But from his short ruling he accepted the side of the plaintiff’s argument holding that the Gold Coast Advisory Company Ltd, the Claimant/Appellant, was liable for the debt of the defendant and proceeded to make a Decree Absolute in respect of the Bank Accounts with the Zenith Bank in favour of the plaintiff. It is this finding that has brought the parties before this court.
A little background information on the case should suffice for understanding the opinion we are about to deliver.
Plaintiff/Respondent, who we will refer to as the plaintiff in this appeal, issued a writ against the Gold Coast Fund Management Ltd, defendant in the suit, for recovery of an amount of GHC3,722,822.26 being the principal amount he invested in the defendant company for the period 14th February 2016 and 17th August 2018. He sought also from the defendant company an amount of GHC233,012.46 being interest accrual on the sum of GHC3,500,000.00 invested from October 2018 to December 2018. On the 14th of January 2019 he had default judgment for both claims. Entry of judgment was filed accordingly, and the plaintiff proceeded into execution applying Ex Parte for Garnishee Nisi against an account with the Zenith Bank which was granted in the following terms:
“Application granted. It is hereby ordered that Garnishee Nisi be issued against the General Manager Zenith Bank to show cause why monies held by the Zenith Bank Ltd for and on behalf of the Gold Coast Fund Ltd otherwise called Ghana Gold Coast Fund Company and also Gold Coast Advisory Company be used to satisfy the judgment debt ordered the applicant Stephen Kojo Adrah. The Account Number of the said company is 0006010148243”.
No doubt by this order, the trial judge believed the Gold Coast Fund Management Ltd, the debtor, is the same as Ghana Gold Coast Fund Company and the same as Gold Coast Advisory Company having the same account number 0006010148243.
It was at this stage the Claimant, who is the appellant before us, came in with an application to terminate co