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GHANA BAR REPORT 1994 -95 VOL 1

 

Oils & Fats Ltd and others v Hooper and others [1994 – 95]  1 G B R 408 - 425 S C

SUPREME COURT

ABBAN, AMUA-SEKYI, BAMFORD-ADDO, HAYFRON-BENJAMIN, AMPIAH, JJSC

28 FEBRUARY 1995

 

Practice and procedure – High Court – Venue – Objection may not be raised after filing defence – Prior unsuccessful application to Chief Justice for transfer of action irrelevant to objection to venue – Courts Act 1971 (Act 372) s 99, High Court (Civil Procedure) (Amendment) Rules 1977 (LI 1107) Or 5 r 1.

Upon entering conditional appearance to the action in the High Court, the defendants petitioned the Chief Justice under section 99 of the Courts Act 1971 (Act 372) to transfer the case from Cape Coast to Accra. The Chief Justice declined and the parties filed their statements of claim and defence respectively. The defendant, then applied under Order 5 r 1 of the High Court (Civil Procedure) (Amendment) Rules 1977 (LI 1107) for an order transferring the case to Accra. The court dismissed the application sub nom Hooper v Oils & Fats Co Ltd [1992-93] GBR 384 and the defendants appealed unsuccessfully to the Court of Appeal, and to the Supreme Court.

Held: (1) The Courts Act 1971 (Act 372) s 99 vested in the Chief Justice the administrative power to transfer any case. Under section 100 of the Act and Order 5 r 1(8), LI 1107, a High Court judge might report the pendency of any proceeding before him to the Chief Justice for transfer. Under section 99 the applicant could apply for transfer at any stage of the proceeding but under section 100 or Order 5 rule 1(8) he ought to do so before or at the time when he was required to plead in the action. The difference between the two procedures lay in the timing of the application.

(2) When the defendants applied to the High Court, they had filed their statement of defence, contrary to the provision in Order 5 r 1(8). They could have brought their application after entering conditional appearance or even at the time of filing the defence but not afterwards. The earlier application to the Chief Justice under section 99 did not affect the time for raising the objection under the rule. The objection was therefore belated.

K Zwennes (with him, Hughes and Amponsah-Dadzie) for the appellants.

Dereck Sangari for the respondents.

Case referred to:

Mahama v Soli [1976] 2 GLR 99.

APPEAL from the ruling of the Court of Appeal in Hooper v Oils & Fats Ltd [1992-93] GBR 384.

BAMFORD-ADDO JSC. This is an appeal from the majority judgment of the Court of Appeal dismissing an appeal of the appellants which they had brought against the ruling of the High Court, Cape Coast. The appellants were sued in the High Court, Cape Coast by the respondents for certain reliefs. Counsel for appellants entered conditional appearance to the writ. He then petitioned the Chief Justice under section 99 of the Courts Act 1971 (Act 372) for a transfer of the case from Cape Coast to Accra giving reasons for the application. The Chief Justice did not accede to that request. Thereafter the respondents in this case (then plaintiffs) filed a statement of claim and the appellants (the defendants) also filed a statement of defence. A few days later the appellants filed a motion under Order 5 r 1 of the High Court (Civil Procedure) (Amendment) Rules 1977 (LI 1107) for the transfer of the suit to Accra. The relevant sub-rules under Order 5 r 1 are as follows:

“(1) Every writ of summons shall be issued out of the Registry and shall, without prejudice to the provisions of section 99 of the Courts Act 1971 (Act 372) be regulated in accordance with this rule.

(6) All other actions shall be commenced in the Region in which the defendant resides or carries on business.

(8) Where an action is commenced in a Region other than that in which it ought to have been commenced, the action may, notwithstanding, be tried in the Region in which it was commenced unless the court reports to the Chief Justice that in its opinion the action ought to be transferred, and the Chief Justice ordered that it be transferred accordingly, or the defendant raised an objection to the jurisdiction before or at the time he is required to plead in the action.” (Emphasis mine.)

The High Court dismissed the application for transfer holding that the respondents were entitled to sue the appellants in Cape Coast and also that the application in any case was belatedly made under order 5 r 1(8) of LI 1107. The appellants appealed to the Court of Appeal, which also by a majority of 2 to 1 dismissed the appeal, hence the appeal to this court.

The grounds of appeal are that the majority in the Court of Appeal wrongly held that the objection to venue was taken belatedly under Order 5 r 1(8) of LI 1107, in that by so holding they failed to appreciate that the respondents had other available procedure under section 99 of the Courts Act 1971 for objecting to venue. Another ground was that the Court of Appeal, in giving reasons for dismissing the appeal erroneously held that when the appellants filed their defence they were caught by Order 70 rule 2 of the High Court (Civil Procedure) Rules 1954.

The Courts Act 1971 (Act 372), section 99 deals with the power of the Chief Justice to transfer any case at any stage in the course of any proceedings either with or without application from any of the parties to the proceedings. This is an administrative power given to the Chief Justice for transfer. Section 100 of the Act also gives a judge of the High Court the judicial power as enacted also in Order 5 r 1(8), to report to the Chief Justice any civil or criminal case pending before him, which in his opinion ought for any reason to be transferred; and if the Chief Justice is satisfied that a transfer is desirable he shall specify the court to which or the judge to whom the case is to be transferred for hearing and determination, and issue such other directions as may be necessary.

An application under section 99 can be made at any stage of the proceeding, but in an application under section 100 or under Order 5 r 1(8) it is specifically stated that the application should be made either before or at the time, when the applicant is required to plead in the action. It is true the appellants had an alternative procedure to object to venue other than Order 5 r 1(8) or under section 99, but the difference between the two procedures lies in the time when the application can be made as stated above; and once a choice is made the rule as to time will be applicable.

When the appellants applied to the High Court at Cape Coast for a transfer of the suit they had already filed a statement of defence; they did not do so before or at the time they were required to plead to the action and they were caught by the provisions of Order 5 r 1(8). Order 1 defines “pleading” to include “any petition or summons and also includes that statements in writing of the claim or demand of any plaintiff, and of the defence of any defendant thereto, and of the reply of the plaintiff to any counter claim of the defendant.” At the time of pleading or before pleading, means exactly what it says and the appellants could have brought their application after entering conditional appearance or even at the time of filing the defence and not afterwards. The fact that they had earlier applied to the Chief Justice under section 99 did not affect the time limit permitted under Order 5 r 1(8) for objecting to venue. The Court of Appeal therefore rightly held that the appellants’ objection to venue was taken belatedly against rule 1(8) of Order 5 and the petition written to the Chief Justice under section 99 of Act 372 could not be considered as an objection under Order 5 r 1(8) nor could it affect the permissible time of objecting to venue, under that rule. In any case the judge did not find it deserving, on the merits to recommend to the Chief Justice, who had already declined to transfer the case by his letter dated 11 June 1990 to the court to exercise his power of transfer under section 100 of Act 372.

In respect of the other ground of appeal namely that the Court of Appeal erred in relying on Order 70 r 2 of the High Court (Civil Procedure) Rules 1954 (LN 140A) as a further reason for holding that appellants’ application for transfer to the court was belated, I think this is quite justified. Order 70 r 2 deals with the effect of non-compliance with the rules and says:

“No application to set aside any proceedings for irregularity shall be allowed unless made within a reasonable time, nor if the party applying has taken any fresh step after knowledge of the irregularity.”

The application made by the appellants to the High Court, Cape Coast was not made under Order 70 r 2 to set aside any proceeding for irregularity, it was made under Order 5 r 1(8) for transfer of the case to another venue and therefore Order 70 r 2 had no application to this case. The reason given for dismissing the appeal on this ground was therefore not only wrong, but also irrelevant. However since this was not the only reason why the Court of Appeal held that the application brought by the appellants for a transfer of the suit was belated, this error would not alter the outcome of this appeal which is that the Court of Appeal rightly dismissed the appeal on the ground that the application brought under Order 5 r 1(8) was belated. Perhaps it would not be out of place here to remind ourselves of the admonition of Wiredu J in the case of Mahama v Soli [1976] 2 GLR 99 at 101, holding (5) that:

“The provision of the Courts Act, 1971 (Act 372) section 99 should be invoked only in exceptional and extreme cases. The practice whereby parties or their solicitors resorted to it in ordinary circumstances which could be dealt with under the Courts Act 1971 (Act 372), section 100 should be discouraged.”

Now the relevant section is section 105 of the Courts Act 1993 (Act 459). For the above reasons the appeal fails and ought to be dismissed. The substantive case should be tried before the High Court, Cape Coast.

(sgd) ABBAN JSC

(sgd) AMUA-SEKYI JSC

(sgd) HAYFRON-MENJAMIN JSC

(sgd) AMPIAH JSC

Appeal dismissed.

S Kwami Tetteh, Legal Practitioner

 
 

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