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IN THE SUPERIOR COURT OF JUDICATURE

IN THE HIGH COURT

ACCRA

CORAM; JUSTICE KWABENA ASUMAN-ADU

 

SUIT NO. SUIT NO.TRLD 96/09

14 January 2011

 

JOWAK SAWMILLS

 

PLAINTIFF

VRS

 

 

1. ATTORNEY GENERAL 2.FORESTRY COMMISSION 3.FORT WILLIAMS CO.LTD

 

DEFENDANT

 
 

JUDGMENT: By amended writ of summons and statement of claim filed at the Registry of this Court on 22nd October, 2008, the Plaintiff claims against the Defendants jointly and severally the following reliefs:- a) A declaration that by virtue of approval letters dated 7th January, 2008 and 11th January, 2008 Western Region (Ghana/Cote d’ lvoire boundary teak trees) Forest Reserve has been allocated to Plaintiff by 1st and 2nd Defendants. b) An order restraining 1st and 2nd Defendants from granting entry permit to 3rd Defendant or any other person or Company to enter Western Region (Ghana/Cote d'lvoire boundary teak trees) Forest Reserve. c) An order directing 1st and 2nd Defendants to issue forthwith, entry permit to Plaintiff Company to enter Western Region (Ghana/Cote d'lvoire boundary teak trees) Forest Reserve. d) An order cancelling the purported reallocation of the Western Region (Ghana/Cote d’ lvoire boundary teak trees) Forest Reserve to 3rd Defendant Company or to any other Company. e) Costs including legal fees. 2nd and 3rd Defendants filed separate statements of defence denying the claim of the Plaintiff. The 3rd Defendant went on to counterclaim as follows: (i) A declaration that the purported grant or allocation of the disputed area, that is the Ghana/Cote d'Ivoire boundary teak trees Forest Reserve is contrary to Law, that is the Timber Resources Management Act, 1997 (Act 547) as amended by Timber Resources Management Amendment Act, Act 2002 (Act 617) and the Timber Resources Management Regulations, Amendment Regulations, 2003 [LI 1721] and as such void and of no effect. (ii) A further order that the purported wrongful act, if any, has itself lapsed by virtue of Plaintiffs blatant failure to fulfill the conditions precedent to consummation of the purported grant. (iii) An order annulling the purported grant of the disputed area, that is the Western Region (Ghana/Cote d'Ivoire) boundary teak trees Forest Reserve to Plaintiff or any other Company save the 3rd Defendant herein. (iv) An order of perpetual injunction restraining the Plaintiff from laying any claim to the disputed area and engaging in any act preparatory to entering onto the lands for the purposes of operating therein. (v) A further order directed at 1st and 2nd Defendants to arrange entry permits for the 3rd Defendant in respect of the disputed area. (vi) Other reliefs. (vii) Costs including Solicitor's fees and costs. At the close of pleadings all the issues raised in the application for directions filed on 12th December 2008 and the additional issues filed by the 2nd Defendant on 3rd June 2009 were set down for trial by this Court. The issues set down were as follows:- a. Those filed by the Plaintiff were:- 1. Whether or not, by letters dated January 7, 2008 and January 11 2008, 1st and 2nd Defendants gave approval for replacement of Opro River, Asumina, Nsemere Sawsaw Forest Plantations with Western Region Ghana/Cote d'Ivoire boundary teak trees, Pampawie Central in the Jasikan District and Afrenso Brohuma Forest Reserve Plantation Compartment Seven (7) for Plaintiff. 2. Whether or not the decision contained in the letters dated January 7 2008 and January 11 2008 was subject to manual procedures of 2nd Defendant which included assessment of the standing teak volumes involved. 3. Whether or not Plaintiff company was required to pay additional sum of GH¢1,243,047.46 as a result of the decision of the Hon. Minister of Lands, Forestry and Mines to allocate Western Region (Ghana/Cote d'Ivoire) boundary teak trees, Pampawie Central in the Jasikan District and Afrenso Brohuma Forest Reserve Plantation to Plaintiff company as replacement and compensation for the loss of the Opro River Plantation. 4. Any other issues raised by reason of the pleadings. b. Additional issues filed by the 2nd Defendant were:- 1. Whether or not the Hon. Minister of Lands, Forestry and Mines has the authority to give teak trees to anybody, the Plaintiff inclusive, as compensation without payment of the value thereof under any circumstance. 2. Whether or not the Plaintiff company raised objections to 2nd Defendant's demand for payment of additional sum of GH¢1, 243,047.46. 3. Whether or not 2nd Defendant is estopped from allocating the Ghana/Cote d'lvoire boundary teak trees to 3rd Defendant. On 3rd June 2010, the 2nd Defendant filed amended statement of defence pursuant to this Courts order further denying the claim of the Plaintiff. At the trial each of the parties called one witness to give evidence in support of its case. The Plaintiff's case which was presented by its Managing Director, John OWUSU Amankrah is that by a letter dated 27th June, 2007, the 2nd Defendant allocated to it, boundary teak trees in seventeen (17) specified Forest Reserves in consideration of the sum of GH¢1,338,883.84 in addition to 15% Value Added Tax, He tendered in evidence the letter of allocation as Exhibit A. By the said exhibit, the Forest Reserves allocated to the Plaintiff included, Afram Headwaters, Asubima, Asufu Shelterbelt East, Asufu Shelterbelt West, Opro River, Glanirma and Kwamisa, all in Offinso District. Others included Dome River and North Bandai Hills in Juaso District. The rest were Bosomkese in Bechem District, Nsemere/Sawsaw and Yaya in Sunyani District, Bosomoa arid Buru in Kintampo District, Aboma, Pru Shelterbelt and Awura in Mampong District. According to the Plaintiff full payment was made by it to the 2nd Defendant in respect of the said allocation on 12th July 2007. A receipt on the said payment was tendered in evidence by the Plaintiff as Exhibit B. In addition to the payment of the cost of the Forest Reserves, the Plaintiff claims that it satisfied all the requirements in the allocation letter except two, namely Tax clearance certificate and Vat registration certificate. It explained that those requirements could not be satisfied because it had not been given entry permit. This is because entry permit had to be issued before satisfying those requirements. Plaintiff avers that the entry permit was later issued for all the Seventeen Areas except four which were Opro River, Asubima, Nsernere and Sawsaw Forest Reserves. The Plaintiff protested against the exclusion of those areas from the entry permit. This resulted in a meeting being arranged by the Minister of Lands, Forestry and Mines between the Plaintiff and 2nd Defendant including representatives from the Ministry of Finance and Economic Planning to resolve the matter. After the meeting it was agreed that the exclusion of those areas from the entry permit was not the fault of the Plaintiff so it would be allocated the Western Region Ghana/Cote d'lvoire boundary teak trees, Pampawie Central in the Jasikan District and Afrenso Brohuma Forest Reserve Plantation Compartment Seven (7) as replacement and compensation. In accordance with the understanding reached at the meeting, by a letter dated 7th January, 2008, addressed to the 2nd Defendant, the Minister for Lands, Forestry and Mines gave approval for the granting of those areas to the Plaintiff as replacement and compensation. The Plaintiff tendered in evidence the letter as Exhibit C. The Plaintiff claims that by the letter written by the Minister it was not supposed to make further payment since the areas directed to be given to it in the letter were for replacement and compensation. Following the directive by the Minister that those three areas be allocated to the Plaintiff as replacement and compensation, the Chief Executive of the 2nd Defendant company by a letter dated 11th January, 2008 addressed to the Plaintiff confirmed the allocation of those three areas to the Plaintiff. The letter was tendered in evidence as Exhibit D. According to the Plaintiff by the letter it was not required to make further payment to the 2nd Defendant in respect of the allocation of those three areas. Plaintiff goes on to aver that 2nd Defendant went on to issue entry permit for two of the areas, namely Pampawie Central in the Jasikan District and Afrenso Brohuma Forest Plantation Compartment Seven (7) but declined to issue entry permit for the Western Region (Ghana/Cote d'lvoire) boundary teak trees Forest Reserve. The Plaintiff claims that the Chief Executive informed it that he did not know the number of stumps in the area and since they would be paying social responsibility to the community, it would be prudent to let his people go and check the stumps before issuing entry permit in respect of that area. Whilst the Plaintiff was waiting for the entry permit in respect of that area, it got information that the 2nd Defendant had sold the area to the 3rd Defendant, hence this action. The Plaintiff denied that it was to make additional payment in respect of the Western Region (Ghana/Cote d'lvoire) boundary teak trees Forest Reserve. Also the allocation made to it by the Chief Executive of the 2nd Defendant company was not subject to its manual procedures. Plaintiff avers that at the time the 3rd Defendant allegedly paid for that area, the place had been allocated to it and it had made full payment in respect of that. It claims that if it had worked out the interest rate at that time for them to pay they would have paid higher than the Western Region boundary lines. The Plaintiff is as a result entitled to the reliefs endorsed on the writ of summons.The case for 1st Defendant which was presented by Joseph Osiakwan is that somewhere in 2007, a company petitioned the then Minister of Lands, Forestry and Mines, Hon Esther Obeng Dapaah that the area allocated to it had been re-allocated to the Plaintiff. The Minister invited the two parties and resolved the matter. She realized that it was no fault of any of the parties so she decided to find a replacement for the Plaintiff. According to the 1st Defendant, the Minister proposed that three areas be given to the Plaintiff as replacement. These were Pampawie Central in the Volta Region, Afrenso Brohuma Forest Reserve and the Ghana/Cote d'lvoire boundary teak trees Forest Reserve. The 1st Defendant avers that the 2nd Defendant complied with the Minister's directives and allocated those three areas to the Plaintiff. The 1st Defendant claims that the replacement exceeded the volume of trees taken from the Plaintiff by about six thousand cubic meters. It avers that in such a situation there are three scenarios. These are either the company gets an area which is equal to what it lost. The second is where the company is given less than what it lost. In such a situation the company applies for a top up. The third one is where the company is given more than what it lost but it would have to pay for the excess. It claims that in the current case the third scenario was used so the Plaintiff was expected to pay for the excess. It is, therefore, not true that the Plaintiff was given the area in dispute for free. This is because the Minister does not have the mandate to give any area for free. The Plaintiff is, therefore, not entitled to its claim. The case for the 2nd Defendant which was presented by Francis Amoah is that sometime in June, 2007, the Forestry Commission allocated seventeen forest reserves to the Plaintiff on condition that the Plaintiff would fulfill some requirements including 100% payment for the volume of trees allocated including VAT and NHIS. The 2nd Defendant conceded that even though the Plaintiff made full payment in respect of the areas allocated to it, the entry permit issued to the Plaintiff excluded Opro River Forest Reserve which was one of the areas which had been allocated to the Plaintiff. This was as a result of a complaint lodged by Evans Company Ltd in respect of the Opro River. The 2nd Defendant avers that the Minister approved the allocation of the Opro River to Evans Timbers and three areas to replace Opro River that had been taken away from the earlier allocation made to the Plaintiff. The 2nd Defendant goes on to aver that when the Minister's directive got to it, they computed the volumes and realized that the Plaintiff had lost a little over 2000 cubic meters. Meanwhile, the areas allocated to the Plaintiff were far in excess of that figure. It claims that the Pampapawie Central and Afrenso Brohuma alone had over 8000 cubic meters which was in excess of the area lost to the Plaintiff by about 6000 cubic meters. The Chief Executive, therefore, allocated the Pampawie Central and the Afrenso Brohuma Forest Reserves to the Plaintiff and it informed it accordingly. According to 2nd Defendant it later wrote to the Plaintiff demanding the payment of an outstanding balance of GH¢1,243,047.46. The Plaintiff was given up to 28th February, 2008 to clear the outstanding balance. It, however, did not pay so the 2nd Defendant stopped it from operating in the areas allocated to it. 2nd Defendant tendered in evidence the letter that was written to stop the Plaintiff from its operations as Exhibit 6. The Plaintiff negotiated with the Chief Executive as a result of which a meeting was held and in the process it submitted a re-payment schedule to the 2nd Defendant. He tendered in evidence the minutes of the meeting and the payment schedule submitted by the Plaintiff as Exhibits 8 and 9 respectively. With respect to the 3rd Defendant, the 2nd Defendant avers that the then Minister for Forestry, Lands and Mines in August 2008, approved that the Ghana/Cote d’Ivoire boundary teak trees be allocated to it. So the 2nd Defendant made that allocation to the company. The company fulfilled all requirements as a result of which entry permit was issued to it. Plaintiff is, therefore, riot entitled to its claim. The case for the 3rd Defendant was presented by Kwasi Asante. The 3rd Defendant claims that it applied to the Ministry to be allocated the Ghana/Gate d'lvoire boundary teak trees Forest Reserve and it was approved. It tendered in evidence copies of the application and the approval letters as Exhibits 10 and 11 respectively. The 2nd Defendant, therefore, wrote to 3rd Defendant confirming the allocation and asking it to comply with certain requirements. It tendered in evidence the letter as Exhibit 12. On receipt of that letter it complied with all the requirements as a result of which it was given entry permit in respect of the area. He tendered in evidence the entry permit as Exhibit 15. When it went to the area with intention to work it was stopped by an order of this Court. In view of that it could not go to the area to work. According to the 3rd Defendant the Plaintiff failed to satisfy the requirements for the allocation and also failed to pay for the excess volume of teak in the disputed area. It was as a result of that failure on the part of the Plaintiff that the 2nd Defendant sold the area to it. The Plaintiff is. therefore, not entitled to its claim. ln civil cases, the general rule is that the party who in his pleadings or writ of summons raises issues essential to the success of his case assumes the onus of proof. See Faibi v State Hotels Corporation [1968] GLR 471 and Bank of West Africa Ltd v Ackun [1963] 1 GLR 176. See also Sections 10 and 11 of the Evidence Act, 1975 (NRCD 323). Also in the case of Boakye v Asamoah and Another (1974) 1 GLR 38 it was held that the well-known legal or persuasive burden of proof is the burden borne by the party who will lose the issue unless he satisfies the tribunal of fact to the appropriate degree of conviction. In the current case the burden is on the Plaintiff to produce sufficient evidence to prove its case. This Court will, therefore, have to find out from the evidence before it, whether the Plaintiff has properly discharged that burden. In doing that the Court will have to consider the issues that were settled by this Court for determination. The first issue to consider is whether or not by letters dated January 7, 2008 and January 11, 2008, 1st and 2nd Defendants gave approval for replacement of Opro River, Asumina, Nsemere Sawsaw Forest Plantations with Western Region Ghana/Cote d'lvoire boundary teak tree, Parnpawie Central in the Jasikan District and Afrenso Brohuma Forest Reserve Plantation Compartment seven (7) for Plaintiff. By Exhibit A, the Plaintiff was allocated boundary teak trees in 17 Forest Reserves at the cost of GH¢1,338,883.84 in addition to 15% Value Added Tax subject to the Plaintiff fulfilling certain requirements. From the evidence before the Court, the Plaintiff as at 12th July, 2007 had made full payment in respect of the allocated areas. The Plaintiff claims that in spite of this the 2nd Defendant gave entry permit in respect of the seventeen areas excluding four of them. The four were the Opro River, Asumina, Nsemere and Sawsaw Forest Reserves without given reasons for that. The Plaintiff, therefore, protested to the then Minister for Lands, Forestry and Mines. The Minister conveyed a meeting on the issue and in the process it was agreed that three areas made up of the Western Region Ghana/Cote d'lvoire boundary teak trees, Pampawie Central in the Volta Region and Afransu Brohuma Compartment seven Forest Reserves be allocated to the Plaintiff as replacement and compensation for the loss of Opro River area. The Minister per Exhibit C dated 7 thJanuary 2008 directed the Chief Executive of the 2nd Defendant company to allocate the areas to the Plaintiff. The Chief Executive per Exhibit D dated 11th January 2008 made the allocation to the Plaintiff. I wish to refer to the Minister's letter in this Judgment as follows: 7th JANUARY 2008 “THE CHIEF EXECUTIVE FORESTRY COMMISSION ACCRA RE: APPROVAL FOR THE REPLACEMENT OF OPRO RIVER, ASUMIMA, NSEMERE, SAW FOREST PLANTATIONS FOR MESSRS JOWAK LIMITED. I refer to the petition of Messrs Evans Timbers Limited (Reference ETL/LFM/19/07) dated 8th October 2007 on the allocation of Opro River Forest Reserve Plantation boundary teak to Messrs Jowak Limited. I also refer to our discussions in my office on the above subject matter. I have examined all the issues involved in the matter, including the fact that Messrs Jowak Limited has made full payments for the areas allocated to the company as far back as 12th July 2007 and that the loss of Opro was through no fault of the company. On the basis of the foregoing I direct that approval is given for the granting of the following areas listed below as replacement and compensation to Messrs Jowak Limited. The areas are: 1. Western Region (Ghana/Cote d'Ivoire boundary teak trees 2. Pampawie Central in the Jasikan District 3. Afranso Brohuma Forest Reserve Plantation-Compartment Seven (7) I further wish to direct that Opro River Forest Reserve Plantation boundary teak be allocated to Messrs Evans Company Limited subject to full payment of the standing volume of teak timber in the boundary lines. The above directive supersedes all previous correspondences on the issue. Kindly take necessary action and provide feedback to me as early as possible. Thanks for your cooperation on such matters. ESTHER OBENG DAPPAH, (M.P.) MINISTER cc CHAIRMAN FORESTRY COMMISSION ACCRA THE MANAGING DIRECTOR JOWAK LIMITED ACCRA THE MANAGING DIRECTOR EVANS COMPANY LIMITED P.O. BOX M.933 SUAME-KUMA SI" From the Minister's letter as shown above, there is no doubt that she directed that the three Forest Reserves be allocated to the Plaintiff as replacement and compensation for the loss of Opro River Forest Reserve since the loss of the area was no fault of Plaintiff. Even though the heading of the letter deals with the replacement of Opro River and three others, the contents of the letter shows that the three areas made up of Western Region (Ghana/Cote d'lvoire Boundary teak trees, Pampawie Central in the Jasikan District and Afranso Brohuma Forest Reserve Plantation - Compartment Seven (7) were allocated to the Plaintiff as replacement and compensation for the loss of Opro River Forest Reserve. The Minister's letter never stated that the three areas were being allocated to the Plaintiff as replacement and compensation for the Opro River and the other three areas stated in the heading of the letter. The contents of the letter clearly show that the three areas were allocated to the Plaintiff as replacement and compensation for only the Opro River. It is my opinion that the Minister did not include the other areas in the letter because Exhibit 5, dated 20th September. 2007 shows that entry permit was given to the Plaintiff in respect of all the seventeen areas except the Opro River. Subsequent to the Ministers letter, the Chief Executive of the 2nd Defendant company made the allocation to the Plaintiff as shown in Exhibit D dated 11th January 2008. I wish to refer to the said letter in this judgment. “THE MANAGING DIRECTOR MESSRS JOWAK LIMITED ACCRA Dear Sir, ALLOCATION OF OPRO RIVER FOREST RESERVE TO MESSRS JOWAK LIMITED AND EVANS TIMBERS LIMITED AND RELATED MATTERS I hereby inform you that following a directive by the Minister for Lands, Forestry and Mines the following teak stands have been allocated to Messrs Jowak Limited. 1. Compartment 7, Afrensu Brohuma Forest Reserve - Offinso District 2. Pampawie Central, Apepesu Forest Reserve - Jasikan District 3. Western Region, Ghana-Cote d'ivoire boundary teak. Yours faithfully, CHIEF EXECUTIVE PROF. Nll ASHIE-KOTEY" So from the two letters dated 7th January 2008 and 11th January 2008, it is very clear that 1st and 2nd Defendants allocated the Western Region Ghana/Cote d'lvoire boundary teak trees, Pampawie Central in the Jasikan District and Afrenso Brohurna Forest Reserve Compartment Seven (7) to the Plaintiff as replacement and compensation for the loss of only the Opro River. The Supreme Court held in the case of Fosua & Adu-Poku v Adu-Poku Mensah [2009] SCGLR 310 that it is settled law that documentary evidence should prevail over oral evidence. Thus where documents supported one party's case as against the other, the Court should consider whether the latter party was truthful but with faulty recollection. In the current case the contents of the two letters from the 1st and 2nd Defendants respectively are very clear that the three forest reserves including the disputed area were allocated to the Plaintiff by the 1st and 2nd Defendants as replacement and compensation for the loss of Opro River and being documentary evidence that is more probable than any other oral evidence and I so hold. The next issue to consider is whether or not the decision contained in the letters dated 7th January, 2008 and 11th January, 2008 was subject to manual of procedures of 2nd Defendant which included assessment of the standing teak volumes involved. The Defendants claim that both letters dated 7th and 11th January, 2008 were subject to manual of procedures of 2nd Defendant which included assessment of the standing teak volumes involved. According to them it was as a result of that, that the 2nd Defendant assessed the volumes of teak in the area in dispute and asked the Plaintiff to pay the excess volume of teak by a certain day which it refused to pay. The contents of the two letters are very clear and unambiguous. The Minister made reference to the allocation of Opro River Forest Reserve to the Plaintiff in Exhibit C. The letter also states that the Plaintiff had made full payments in respect of the areas allocated to it as far as back as 12th July 2007. The evidence before the Court shows that the Plaintiff was allocated seventeen Forest Reserves including Opro River and full payment was made by it in respect of the allocation. The evidence goes on to show that in spite of the fact that it had made full payment in respect of the allocation it was issued entry permit for the areas excluding the Opro River. The letter shows that the loss of Opro River was no fault of the Plaintiff. It was as a result of this that the three areas were allocated to the Plaintiff as replacement and compensation. The letter clearly shows that the Minister directed that the three areas be allocated to the Plaintiff in the first place as replacement for the loss and secondly, as compensation. If it had been only replacement for the loss then the scenarios provided by the 1st Defendant would hold. On the issue of replacement the 1st Defendant per Joseph Osiakwan, a Senior Planning Officer in charge of policy at the Ministry of Lands and Natural Resources who gave evidence on behalf of the 1st Defendant told the Court in his evidence-in-chief as follows: "Q. Do you know the reason why the Plaintiff has brought this action to Court? A. Yes my lord. Q. And can you tell this Court what you know about the matter? A. Somewhere in 2007 a company called Fort Williams petitioned the then Minister of Land and Forestry, Hon. Esther Obeng Dapaah that the area that he has been allocated to fell teak trees has been re-allocated to another timber company that is JOWAK Sawmills. So the Minister invited the two parties and resolved the matter. She realized that it was no fault of any of the parties so she decided to find replacement for JOWAK Sawmills. Q. So the Forestry Commission complied with the Minister's directives. A. Yes my lord. Q. So in total how many areas were given to the Plaintiff as a replacement? A. The Minister proposed three areas to be allocated to the Plaintiff. Afranso Brohuma Forest Reserve, Pampawie Forest Reserve in the Volta Region and the Ghana-Cote d'lvoire boundary teak trees. Q. And was the replacement equal to the volume amount that was taken from the Plaintiff at the time? A. My lord the replacement was far and over what he lost. Q. Far and over? A. It was in excess for about six thousand of what he lost. 0. What is the normal at the Ministry when areas are re-allocated to other timber contractors? A. Normally what happened is that replacement reoccur. When they occur there are three scenarios. Either the company gets an area which is equal to what he lost. In that case there is no dispute and the other scenario the company gets less than what he lost and in that case he applies for a top up. The third scenario is that you will get over and above what you lost but you will have to pay for the excess. Q. So in this case what scenario does this case fits in? A. The third scenario applies in this case." If the Ministers letter had been for only replacement, then the scenarios identified by the witness would have applied. This is because replacement implies taking the place of another thing. The two must therefore be identical. The volume of trees in the area being given as replacement should not exceed the one lost. In that case if it is in excess then the beneficiary should pay the difference. In the current case the Minister's letter talks about replacement and compensation so the situation is different. The scenarios identified by the witness will, therefore, not apply. Compensation is defined by the Black's Law Dictionary, 9th edition at page 322 as payment of damages, or any other act that a Court orders to be done by a person who has caused injury to another. It goes on to state that in theory compensation makes the injured person whole. In the current case the Minister's letter shows that the Plaintiff made full payment for the allocation of the seventeen areas to it as far back as 12th July 2007. Through no fault of it, it could not enter the Opro River because it was excluded from the entry permit given to it in spite of the fact that it had paid for it. It had to wait until 7th January when the Minister's letter was written. This implies that for about six months as at that time, the Plaintiff could not operate. This clearly shows that the Plaintiff would definitely suffer financial loss in the sense that it would be paying interest on the money it had paid but would make no earnings on it. The Plaintiff avers in its evidence-in-chief that it was allocated the areas as replacement and compensation for the time that the 2nd Defendant had kept the money and the time wasted. This follows that the compensation was given to cover the injury suffered as a result of the financial loss. It is, therefore, not surprising that the volume in the three areas stated in the Minister's letter exceeds the volume in the area lost by the Plaintiff. The letter made it clear that the allocation of Opro River to Messrs Evans Company Limited was subject to full payment of standing volume of teak timber in the boundary lines. Nothing of that sort was written in respect of the allocation to the Plaintiff. This clearly shows that it was not the intention of the Minister that the Plaintiff should make further payment. If it was her intention that further. payment should be made by the Plaintiff, it would have stated it just as she stated in respect of the allocation to Evans Timbers. The letter dated 11th January 2008 written to the Plaintiff by the Chief Executive of the 2nd Defendant company was to implement the Minister's directive. There was nothing in the letter indicating that the allocation was subject to manual of procedures of 2nd Defendant which included assessment of the standing teak volumes involved. According to the Plaintiff the only reason given by the 2nd Defendant for deferring the issuance of the entry permit for the disputed reserve was that the 2nd Defendant wanted to count the number of trees in the reserve to enable it calculate the social responsibility payments. It, therefore, had nothing to do with excess payment. It is even observed that the 2nd Defendant issued entry permit in respect of the other two areas in the Minister's letter without asking the Plaintiff to satisfy certain conditions. This was because the 2nd Defendant accepts that the payment made by the Plaintiff was sufficient to cover the said allocation. The Defendants claim that the Plaintiff did not satisfy the requirements contained in the letter dated 27th January 2007 in which seventeen areas were allocated to the Plaintiff. Meanwhile, as has been stated in this judgment the 2nd Defendant issued entry permit for two of the areas contained in the letters dated 7th and 11th January. The question is if the Plaintiff had not satisfied the requirements then why did the 2nd Defendant issue entry permit for the two areas out of the three areas? If it had not satisfied the requirements there would have been no reason to issue entry permit for the other two areas contained in the two letters excluding the Ghana/Cote d'lvoire boundary teak trees. The permit was issued because the Plaintiff had earlier on satisfied the relevant requirements. It had earlier on paid GH¢1,400,000.00 to cover full payment for the seventeen areas including the Opro River that it lost. Even the Plaintiff claims that it bought the seventeen areas because of the Opro River in the sense that the quality of trees could not be got from anywhere. This shows that it highly valued that forest reserve so when that area was taken away from it, the Plaintiff vehemently protested against it. When the Minister realized that the loss was not its fault she decided it would replace and compensate the Plaintiff with the three areas. The evidence before the Court shows that immediately the Minister gave her directive the 2nd Defendant issued entry permit to the Plaintiff in respect of Pampawie Central and Afranso Brohuma without going through manual procedures. The question then is if the allocation of those areas were subject to manual of procedures of 2nd Defendant why was the entry permit to the two areas issued without those procedures? The said procedures could not have been limited to the disputed area alone. It would have been for all the areas. So from the foregoing it is the opinion of this Court that the decision contained in the letters dated 7th January, 2008 and 11th January, 2008 was not subject to manual of procedures of 2nd Defendant and that the assessment of the standing teak volumes in the disputed area made by the 2nd Defendant was for the purpose of calculating social responsibility payment and I so hold. The next issue is whether or not Plaintiff company was required to pay additional sum of GH¢1,243,047.46 as a result of the decision of the Hon. Minister of Lands, Forestry and Mines to allocate Western Region (Ghana/Cote d'lvoire) boundary teak trees, Pampawie Central in the Jasikan District and Afrenso Brohuma Forest Reserve Plantation to Plaintiff Company as replacement and compensation for the loss of the Opro River Plantation. From the contents of the Minister's letter as already explained in this judgment, the Plaintiff was not required to pay additional sum of GH¢1,243,047.46. This was because the Plaintiff had made full payment. of GH¢1,400,000.00 in respect of the original allocation of 17 areas made to it. It was, however, given entry permit excluding the Opro River Forest Reserve and it had to protest before the three areas in the Minister's letter were allocated to it as replacement and compensation. As has been stated in this judgment, failure of the 2nd Defendant to allocate the Opro River to the Plaintiff when it had paid for it amounts to financial loss This is because if the Plaintiff had worked with the money it would h e earned some profit on it. Defendants create the impression that the Plaintiff is claiming that the three areas should be allocated to it for free and that it would make no payment of VAT. Since the Plaintiff had already paid for the Opro River and the three areas were allocated to it because of the loss of that area, it cannot he said that the three areas were being given to the Plaintiff for free. It had already made payment for the areas in respect of the payment made for the Opro River. Also in respect of the VAT, Exhibit A makes it clear that an amount of GH¢1,338,883.84 was to be paid by the Plaintiff for the seventeen areas in addition to 15% VAT for the volume of teak allocated. Then Exhibit B shows that the payment of GH¢1,400,000.00 made by the Plaintiff excluded VAT. It states that VAT receipt would be issued when the VAT was paid. It is, therefore, very clear from the evidence that the Plaintiff had not paid the VAT and it has never stated that it is demanding the replacement and the compensation without the payment of VAT. In my opinion it has not paid the VAT because of the issue at stake. It is, therefore, the view of this Court that the three areas including the disputed areas were allocated to the Plaintiff, firstly as replacement and secondly as compensation so the Plaintiff was not required to make additional payment in respect of the allocation made by the Minister except VAT payment and I so hold. The next issue is whether or not the Hon. Minister of Lands, Forestry and Mines has the authority to give teak trees to anybody, the Plaintiff inclusive as compensation without payment of the value thereof under any circumstance. On this issue the Defendants referred the Court to the Timber Resources Management Act, 1997 (Act 547) as amended by Timber Resources Management Amendment Act, 2002 (act 617) and the Timber Resources Management Regulations Amendment Regulations, 2003 [LI 1721] and submitted that by those statutes, the Minister of Lands, Forestry and Mines had no authority to allocate teak trees to anybody including the Plaintiff as compensation, The issue as to whether or riot the Minister has authority to allocate teak trees as compensation without payment would depend on the circumstances. In the current case as already stated in this judgment. the Plaintiff was allocated seventeen Forest Reserves and it made payment for that. Meanwhile, entry permit was given excluding the Opro River for which, the Plaintiff had already made payment and no refund was made to it. So in view of the fact that it had lost that area for which it had made payment and the fact that the 2nd Defendant had kept Plaintiff's money for about six months without issuing entry permit to it, the three areas were given to the Plaintiff as replacement and compensation. This shows that the Plaintiff did not make further payment because it had already paid for the allocation made to it. Counsel for the 2nd Defendant argues that if the Plaintiff is disputing the fact that it was not supposed to pay for the excess volume allocated, why did its Managing Director submit a reschedule of how it intended to settle the outstanding debt of GH¢1,243,047.46 on March 15, 2010 to the 2nd Defendant as contained in Exhibit 9. He goes on to argue that since Exhibit 9 is an admission of liability, the Plaintiff is estopped by conduct to affirm otherwise. The said rescheduling of the said outstanding debt by the Plaintiff takes its root from Exhibit 8. The said exhibit shows that the Acting Chief Executive of 2nd Defendant company called a meeting to give the Managing Director of the Plaintiff company' the opportunity to discuss the way forward in settling his company's indebtedness to the Commission. It must be noted that the said meeting was held on 30th November. 2009. It goes on to show that no decision was taken on item 4 which deals with the boundary allocation under litigation and the amount involved is GH¢1,243,047.46 Which is the amount being demanded by the 2nd Defendant from the Plaintiff as the outstanding balance. This was confirmed by Francis Amoah who gave evidence on behalf of the 2nd Defendant in his evidence-in-chief on 26th July 2010. I wish to refer to that aspect of his evidence-in-chief as follows: “Q. Can you tell the Court from exhibit 8 where the issue in respect of the excess volume was talked about captured in exhibit? A. My lord it is captured as item 4." The said witness went on to say on the same day that the amount involved in respect of the excess volume was GH¢1,243,047.46. It was based on the agreement reached in Exhibit 8 that Plaintiff issued Exhibit 9. So that exhibit has got nothing to do with the issue before this Court. More so it was issued on March 15, 2010 when this case had been pending before this Court for over one year. The Court cannot, therefore, rely on Exhibits 8 and 9 to make a decision in this case. I, therefore, hold that in the current circumstances where payment has been made in respect of an area and entry permit is not given for that area in spite of the fact that the 2ndDefendant is still keeping the money involved, the Minister could give areas as compensation without asking for further payment and not that she is given the area for free without payment being made. It must be noted that in the current case payment has already been made by the Plaintiff in respect of the payment made for the Opro River which t lost so asking the Plaintiff to make further payment in respect of the allocation would amount to double payment. It must be noted that this does not affect the VAT payment which is yet to be paid by the Plaintiff. The next issue is whether or not the Plaintiff company raised objections to 2nd Defendant's demand for payment of additional sum of GH¢1,243,047.46. According to the Plaintiff it did not receive the letters on the demand for payment of the additional sum. The 2nd Defendant, however, insists that the Plaintiff received the said letters. Since the Plaintiff has denied that it received those letters the onus is on the Defendant to lead sufficient evidence to prove that the Plaintiff received those letters. In the celebrated case of Maiolaqbe v Larbi [1959] GLR 190, it was held that when a party makes an averment in his pleading which is capable of proof in a positive way and the averment is denied, that averment can not be sufficiently proved by just mounting the witness-box and reciting the averment on oath without adducing some corroborative evidence. In the current case Plaintiff has denied that it received those letters so the 2nd Defendant should lead corroborative evidence to prove that the Plaintiff actually received those letters. The 2nd Defendant being a very big organization, it is expected that records of letters sent out would be kept and where necessary tendered in evidence. This it could not do. Since the 2nd Defendant could not lead a corroborative evidence to prove that the Plaintiff received those letters, the Court agrees with the Plaintiff that truly those letters were not received by the Plaintiff. The Defendants claim that by virtue of Exhibit 9 the Plaintiff saw the demand notice on the payment. As has been stated elsewhere in this judgment, Exhibit 9 was written on March 15, 2010. Also the Plaintiff claims it was its lawyer who showed the demand notice to it which implies that it did not see those letters at that time. It saw it at the time it had given the case to its lawyer to take action. It cannot, therefore, be said that the Plaintiff received those letters. Since the Plaintiff did not receive those letters it follows that it would not be able to raise objections to 2nd Defendant's demand for payment of additional sum of GH¢1, 243,047.46. The last issue is whether or not 2nd Defendant is estopped from allocating the Ghana/Cote d'lvoire boundary teak trees to the 3rd Defendant. The evidence before the Court shows that the Minister's directive in respect of the disputed area and the other areas was made on 7th January, 2008 and the Chief Executive implemented the directive by allocating the areas to the Plaintiff on 11th January, 2008. The evidence goes on to show that 3rd Defendant applied to the Minister to be allocated the disputed area on 12th August, 2008 and the approval given on 13th August, 2008. This clearly shows that even at the time the 3rd Defendant applied for the area, the area had already been allocated to the Plaintiff as replacement and compensation for the loss it had incurred. Since it had already made full payment for the original areas allocated to it which included the area it lost, the 2nd Defendant should have issued entry permit for all the three areas without asking the Plaintiff to make additional payment. It was, therefore, wrong for the 2nd Defendant to decide to allocate the area to 3rd Defendant when it had not fully resolved the issue on the Ghana/Cote d'lvoire boundary teak trees with the Plaintiff. It is even observed from the evidence that following the Minister's directive, the 2nd Defendant allocated the Afrensu Brohuma Forest Reserve and the Pampawie Central to the Plaintiff on 10th January, 2008. Then on 11th January, 2008, the 2nd Defendant went on to confirm the allocation of the two areas as well as the Ghana/Cote d'Ivoire boundary teak trees to the Plaintiff. The question-is if it was not the intention of the 2nd Defendant to allocate the Ghana/Cote d’lvoire boundary teak trees to the Plaintiff then why did it go on to confirm the allocation of the three areas to the Plaintiff on 11th January 2008 after it had issued entry permit in respect of two of the areas on January, 2008? It is, therefore, Clear from the evidence that the three areas had already been allocated to the Plaintiff by the 1st and 2nd Defendants. In view of that 2nd Defendant had no basis to take away the Ghana/Cote d'lvoire boundary teak trees from the Plaintiff and re-allocate, it to the 3rd Defendant when it had not fully resolved the issues on it with the Plaintiff. 2nd Defendant is, therefore, estopped from allocating the Ghana/Cote d'lvoire boundary teak trees to the 3rd Defendant and I so hold. From the evidence before the Court, the Plaintiff has led sufficient evidence to prove that in view of the full payment made by it in respect of the allocation of seventeen forest reserves made to it, it is not supposed to make further payment in respect of the allocation of the disputed area to it This is because the disputed area together with other two areas, were allocated to the Plaintiff as replacement and compensation for the area it lost. The Plaintiff is, therefore, entitled to its claim, The 3rd Defendant counterclaimed as follows i. declaration that the purported grant or allocation of the disputed area is contrary to law, that is the Timber Resources Management Act 1997 (Act 547) as amended by Timber Resources Management Amendment Act, 2002 (act 617) and Timber Resources Management Regulations Amendment Regulations, 2003 (LI 1721) and as such void and of no effect. A further order that the purported wrongful act, if any, has itself lapsed by virtue of Plaintiff's blatant failure to fulfill the conditions precedent to the consummation of the purported grant. iii. An order annulling the purported grant of the disputed area to Plaintiff or any other company save 3rd Defendant. iv. An order of perpetual injunction restraining the Plaintiff from laying any claims to the disputed area and engaging in any acts preparatory to entering onto the lands for the purposes of operating therein. V. A further order directed to 1st and 2nd Defendants to arrange entry permits for 3rd Defendant in respect of the disputed area. vi. Other reliefs. vii. Costs including Solicitors fees and costs. The 3rd Defendant assumes the position of the Plaintiff in respect of its counterclaim so the burden is on it to lead sufficient evidence to prove its claim. The 3rd Defendant has led evidence to show that it applied for the disputed area to be allocated to it and it was approved. It went on to make full payment in respect of the area and entry permit was issued to it. It is, however, the opinion of this Court that at the time the Ghana/Cote d'lvoire boundary teak trees forest reserve was allocated to the 3rd Defendant, it had already been allocated to the Plaintiff as replacement and compensation for the area it had lost for which the Plaintiff had already made payment. 1st and 2nd Defendants, therefore, did not have the right to re-allocate the area to the 3rd Defendant at a time when they were keeping the Plaintiff's money in respect of the Opro River Forest Reserve. The allocation made to the 3rd Defendant by and 21 Defendants was, therefore, wrong and of no legal effect so the 3rd Defendant is not entitled to its counterclaim. The counterclaim of the 3rd Defendant is as a result dismissed. In the light of the foregoing judgment is granted the Plaintiff as follows:- a. It is hereby declared that by virtue of approval letters dated 7th January, 2008 and 11th January, 2008, Western Region (Ghana/Cote d'Ivoire boundary teak trees) Forest Reserve has been allocated to Plaintiff by 1st and 2nd Defendants. b. It is hereby-ordered that 1st and 2nd Defendants are restrained from granting entry permit to 3rd Defendant or any other person or company to enter the Western Region (Ghana/Cote d'Ivoire boundary teak trees) Forest Reserve. c. 1st and 2nd Defendants are hereby ordered to issue, forthwith, entry permit to Plaintiff in respect of the Western Region (Ghana/Cote d'lvoire boundary teak trees) Forest Reserve. d. It is hereby ordered that the purported reallocation of the Western Region (Ghana/Cote d'lvoire boundary teak trees) Forest Reserve to 3rd Defendant or any other company is cancelled. Plaintiff's costs are assessed as GH¢5O,000.00 against the Defendants jointly and severally. Mr. Kofi Peasah-Boadu for the Plaintiff Ms. Georgina Mensa-Bonsu for the 1st Defendant Mr. Dennis Osei- Hwere for the 2nd Defendant Mr. Addo Atuah for the 3rd Defendant

 

 

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