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IN THE SUPERIOR COURT OF JUDICATURE

IN THE HIGH COURT

ACCRA

CORAM; JUSTICE UUTER PAUL DERY.

 

SUIT NO. SUIT NO. HRCM 78/10

18 February 2011

 

KINAPHARMA LIMITED

 

PLAINTIFF

VRS

 

 

1.THE ATTORNEY-GENERAL 2.THE MINISTRY OF ROAD AND HIGHWAYS 3.LEDZORKUKU KROWOR MUNICIPAL ASSEMBLY

 

DEFENDANT

 

 

The applicant, Kinapharma Limited, a limited liability company registered under the laws of Ghana, on 27-05-2010, by motion pursuant to Order 67 of the High Court (Civil Procedure) Rules, 2004 (C. I. 47) seeks the following reliefs against the respondents, namely: a) A declaration that it is unconstitutional and a breach of the fundamental human rights guaranteed by the 1992 Constitution for the respondents and/or any other institution which forms part of the organs of the respondents to go ahead and demolish applicant's property situated around the Spintex Road, Accra. b) An order of perpetual injunction restraining the respondents from demolishing the applicant's property. c) And for such further orders as the court deems fit. The case of the applicant, is that it acquired a parcel of land of about 1.348 acres (0.545 hectare) at Okpoi Gono (Spintex road) sometime in June, 1992, for the construction of a bonded warehouse, X pert security control and other allied facilities. It went through all the regulatory processes and procedures to have the property registered, obtained from the appropriate authorities a building permit to develop the site into the bonded ware house, X pert security control and other allied facilities. This complex or edifice which has been completed is the pivot of the whole operations of the applicant company. The applicant states that the edifice holds an average of five million United States dollars (US$5,000,000.00) worth of raw and finished products which cannot be relocated unless a similar edifice with all its technological apparatus is put in place concomitantly. The facility is the main distribution hub for finished products for all the applicant's outlets throughout Ghana, the West Africa sub region and the rest of the world. The facility, also, houses other subsidiaries of the applicant which includes X pert securities dealing in electronic surveillance, vehicle tracking, intruder detection monitors, close circuit monitor, panic alarm activation and 'receipt systems for several blue-chip industries and residential facilities throughout Ghana. The complex, also, employed 800 people while 5,000,000 others and entities depend one way or the other on it. The electronics housed by the facility, according to the applicant, include remote monitoring systems for transmission mast throughout Ghana for broadcast and telecom organization which include DFID, Nestle, Newmont Gold, Barclays Bank and Stanbic Bank. The systems housed in the complex cannot be shut down without compromising the security of the companies involved and Ghana as a whole. In the event, however, that the relocation of the complex becomes inevitable, a complete parallel system has to be developed and live migrations completed before same takes place due to the dire security and other implications. The complaint of the applicant is that it came to its knowledge of an impending demolishing exercise of its property by the Department of Urban Roads to create a right of way for the construction of an alternative road in the Spintex road area and wrote to the Ministry of Road and Highways (the 2nd respondent, herein) to justify its existence at the place where the facility is situated and requested meaningful dialogue to solve the issue at stake. However, the 2nd respondent, after discussions on the issue, replied indicating its inability to assist with a replacement land to construct a parallel facility for the live migration of facilities housed in the complex and further reinforced its intentions to demolish the property in spite of the cogent reasons advanced against such a move. In furtherance of their intentions, engineers from the Ledzokuku Krowor Municipal Assembly (3rd respondent) have gone into the applicant's property and marked same for demolition and served notice that the property would be demolished any time without further reference to the applicant. The applicant, thus, invoked the jurisdiction of this court as it is of the view that the intended action of the respondents is unlawful and a breach of its fundamental human rights guaranteed under the 1992 Constitution as regards its rights to acquire property and peacefully enjoy same. The respondents oppose the motion. The case of the respondents is that the Government of Ghana has power under article 257 of the 1992 Constitution to vest in itself any land which is required in the public interest for public purposes, of which the applicant's disputed land is no exception. Furthermore, under section 8 of the Town and Country Planning Act, (CAP. 84), the Minister responsible for Local Government may create a scheme with respect to any land, whether in the urban or rural area and whether or not there are buildings on it with the object of securing proper sanitary conditions and conveniences, and the co-ordination of roads and public services. The respondents contend, also, that the applicant's case is incompetent since its affidavit in support of its case fails to disclose the source of the land as well as the terms or considerations of the head lease. The respondents contend, further, that the applicant obtained a permit to put up the property on the land in dispute in 2007, while the layout of the area by Town and Country Planning, which contains the proposed road to be constructed, was approved in 2004. Thus, based on the balance of convenience, the grant of the applicant's instant motion would mean that the entire nation will be deprived of the comfortable use of the proposed original Spintex road in satisfaction of an individual interest. This would, also, have the effect of the Government permanently not being able to carry out its intentions of development in the interest of the public. Finally, it is the case of the respondents that if the application is refused, the applicant can be adequately compensated by the award of damages. There is sufficient evidence from the applicant's Land Certificate (Kina 1) that the applicant acquired a lease of the land in dispute from Numo Borketey Larweh and Nii Bortrabi Obroni II which lease took effect on 6th June, 1992, for a term of 99 years (with an option to renew for a further term of 45 years). The applicant on 7th February, 1995, registered this lease with the Land Title Registry. The applicant subsequently applied to the appropriate regulatory authorities for a building permit and was granted same on 7th September, 2006. The applicant duly constructed the building for its business. However, sometime in 2008, upon hearing news in the media that the respondents intended to demolish the applicant's said business premises, the applicant wrote to the 2nd respondent, explaining among others, that it properly acquired the land and obtained a building permit before it constructed its business premises and suggested that a discussion could be held to see how to resolve the matter. The response to the applicant's letter from the 2nd respondent, dated January 15, 2010, (Kina 7), is very instructive and I would quote, verbatim, the relevant portions. The letter states among others thus: “….upon a joint inspection to site with your representative Mr. Nuamah Eshen¬Famiyeh we hereby wish to comment as follows: . Department of Urban Roads (DUR) is a mandated government agency that constructs roads infrastructure projects in urban centres of Ghana. . DUR seeks advice from the Lands Valuation Board (LVB) for assessment and valuation of these properties. . DUR pays compensation through the Ministry of Finance and Economic Planning to persons or organizations whose properties are affected by projects i.e. in the Rights of Way of construction (ROW). . Upon completion of the valuation and acceptance of the person or organizations affected by the project, (PAP), DUR then applies for funds through the Ministry of Finance and Economic Planning for payment to the PAP. We regret to inform you ... that DUR will not be in a position to negotiate on your behalf for the acquisition of a replacement of any land elsewhere, but would rather advise you to submit all your documentation including any other cost accrued on your property to the LVB for assessment and further action. We wish to confirm to you that, the project will definitely be implemented and the location of your property is in the Right of Way (ROW) of construction. From the contents of "Kina 7", supra, the respondents, by inference confirms the applicant's evidence that it has title to the land in dispute but that the State has, compulsorily, acquired the said land. The letter, however, did not provide any evidence of the compulsory acquisition. Furthermore, by the affidavit in response to the applicant's motion, filed on 22-07-2010, one Eric Agyekum Amoako, an employee of the 2nd respondent, deposing to facts on the authority of the 2nd respondent, deposed in paragraph 7 thus: "That I am advised by the 1st Respondent (the Attorney-General) and verily believe the same to be true that, under Article 257 of the 1992 Constitution, the Government has power to vest in itself any land which is required in the public interest for public purposes, of which the plaintiff's disputed land is no exception." The above disposition, also, creates the impression that the Government of Ghana vested the applicant's acquired land in itself. However, the deponent nowhere in his affidavit or anywhere else gave any semblance of evidence of the said vesting, The relevant portions of article 257 of the Constitution are clauses (1) and (2) which state as follows: "(1) All public lands in Ghana shall be vested in the President on behalf of, and in trust for, the people of Ghana. (2) For the purposes of this article, ... 'public lands' includes any land which, immediately before the coming into force of this Constitution, was vested in the Government of Ghana on behalf of, and in trust for, the people of Ghana for the public service of Ghana, and any other land acquired in the public interest, for the purposes of the Government of Ghana before, on or after that date," (my emphasis). As indicated earlier on in this ruling, the applicant obtained his lease on 6th June, 1992 and registered same on 7th July, 1995. The 1992 Constitution came into force on 7th January, 1993. So, obviously, if the land in dispute was a public land by 7th January, 1993, the applicant could not have obtained title of same in 1995. Again, the respondents have not shown any evidence that the Government of Ghana has vested the land in dispute in itself after 7th January, 1993. The applicant's land is, therefore, not part of the public lands of Ghana. The respondents, again, seek refuge under the Town and Country Planning Act, 1945 (CAP. 84) by contending that the applicant obtained the permit to put up the property on the said land in 2007, while the layout of the area by Town and Country Planning, which contains the proposed road to be constructed, was approved in 2004. Indeed, by section 2(1) of CAP. 84, the Minister responsible for Local Government has power, after consultation with the relevant local governing authority, to declare an area as a planning area but the Minister could only do so by an executive instrument. This is subject to approval by the Minister responsible for Local Government under section 13 of CAP. 84. The respondents have failed to show any evidence that any executive instrument was issued and approved by the Minister. Furthermore, and perhaps more importantly, the respondents have failed to show that the Minister responsible for Local Government acquired the land in dispute or same was acquired by law pursuant to section 20 of CAP. 84. The relevant sections of section 20 of CAP. 84 provides as follows: "20 (1) The Minister may acquire the land or buildings that are necessary or expedient for carrying into effect the provisions of a scheme. (2) Where the Minister is unable to purchase by agreement a land or building required for carrying a scheme into effect the land or building may be acquired under the State Lands Act, 1962 (Act 125) or the State Property and Contracts Act, 1960 (CA. 6)." The respondents, herein, have failed to show that the Minister acquired the land in dispute by agreement with the applicant. They have, also, failed to show that the land in dispute was acquired under Act 125 or CAP. 6. Before a land is deemed to have been acquired under these Acts, the President of Ghana must do so by executive instrument which would state that the land is needed for the public interest. The executive instrument has to be published including personal service on property owners affected by the acquisition. Thereafter, the affected property owners would be paid adequate compensation and property and persons resettled if the need arises. The above statutory provisions have been transformed into constitutional rights by article 20 of the 1992 Constitution. The relevant provisions of article 20 of the Constitution provides thus: "20(1) No property of any description, or interest in or right over any property shall be compulsorily taken possession of or acquired by the State unless the following conditions are satisfied - (a) the taking of possession or acquisition is necessary in the interest of defence, public safety, public order, public morality, public health, town and country planning or the development or utilization of property in such a manner as to promote the public benefit. (b) the necessity for the acquisition is clearly stated and is such as to provide reasonable justification for causing any hardship that may result to any person who has an interest in or right over the property. (2) Compulsory acquisition of property by the State shall only be made under a law which makes provision for - (a) the prompt payment of fair and adequate compensation; and (b) a right of access to the High Court by any person who has an interest in or right over the property whether direct or on appeal from any other authority for the determination of his interest or right and the amount of compensation to which he is entitled. (3) Where a compulsory acquisition or possession of land effected by the State in accordance with Clause (1) of this article involves the displacement of any inhabitants, the State shall resettle the displaced inhabitants on suitable alternative land with due regard for their economic well being and social and cultural values." The respondents have failed to show that the land in dispute has been compulsorily acquired by the State in accordance with the Constitution, Act 125 and CAP. 6. From the above, I have found that the land in dispute is the leasehold property of the applicant which entitles it to protection under article 18 of the Constitution. By article 18 of the Constitution, the applicant is entitled to own the said land with the development it made thereon. The applicant is protected from any interference from any person or body including the respondents, herein, except in accordance with law. The intended demolition of the applicant's property by the respondents is unlawful as they have failed to show that the land in dispute had been properly acquired in accordance with the due process of the law. Accordingly, I declare that it is unconstitutional and a breach of the fundamental human rights guaranteed by the 1992 Constitution for the respondents and/or any other institution which forms part of the organs of the respondents to go ahead and demolish the applicant's warehouse complex situated along the Spintex road. Any demolition of the said property without following due process would infringe upon the constitutional rights of the applicant under article 18 of the Constitution. Furthermore, the respondents are hereby restrained from going ahead to demolish the applicant's said warehouse without following the due process of law. COUNSEL: 1. Mr. Kwame Boateng for Applicant. 2. Mr. Animah Asare (Assistant State Attorney) appears for Respondents.

 

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