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COMMERCIAL  COURT CASES

 

IN THE HIGH COURT OF JUSTICE (COMMERCIAL DIVISION) HELD IN ACCRA ON THE 27TH JULY 2011 BEFORE HER LADYSHIP BARBARA ACKAH-YENSU (J)

 

                                                            SUIT NO. RPC/184/10

 

 T M M S A                                                           =======    PLAINTIFF

 

                                                  VRS.

                                                FINLAND PLANT & CONSTRUCTION LTD    ======= DEFENDANT

 

=======================================================

 

 

 

JUDGMENT:

 

The Plaintiff herein has sued the Defendant for:

“   1. Recovery of the sum of one hundred and eighty-three

thousand three hundred and sixty-eight Euros (Euros183,368.00) being the outstanding balance together with the accrued interest and sixteen thousand seven hundred and thirty-eight dollars and sixteen cents being the outstanding balance on the parts supplied the Defendant by the Plaintiff which sum the Defendant has refused to pay despite several demands.

 

          2.      Interest on the said sum at the contractual rate of 20%

per annum from the 1st of January 2010 to the date of final payment.

 

          3.      Costs including Solicitors fees”    

 

Per its pleadings, the Plaintiff’s case is that  on or about November 2008 the Plaintiff supplied a New Holland 385 Excavator for the benefit of the Defendant valued at two hundred and ninety one thousand two hundred and seventy-five Euros (Euros 291,275.00). Prior to the delivery of the machine the Defendant made a deposit of $50,000 towards the purchase of the equipment

 

The parties agreed that the cost of the machine would be spread over a twelve month period, in twelve equal instalments of twenty three thousand four hundred and forty four Euros and forty-five cents (Euro 23,444.45) per month ending the 15th day of August 2009.  On the 19th of May 2009, the Defendant paid a sum of one hundred thousand cedis (GH¢100,000). Before then all efforts to get the Defendant to honour his obligations towards the Plaintiff had proved futile. 

 

In the cause of their dealings with the Defendant the Plaintiff supplied certain parts to the Defendant by way of after sales service.  The total cost of the parts was sixteen thousand United States Dollars (USD$16,000). It was a term of the contract that any balance outstanding after the due date, would attract a late payment interest of 20% per anum. 

 

The Defendants despite several demands on them have neglected and or refused to pay the cost of the equipment and spare parts supplied.

 

Having been served with the Plaintiff’s Statement of Claim the Defendants on the 21st day of June 2010, filed a defence to the Plaintiff’s action.  The Defendant’s lawyer however withdrew his representation on the 24th of February 2011.  As a result of this the Court ordered that the Defendant be served personally in Tarkwa, which order was carried out.  Defendant however failed to attend Court, and having failed so to do, the Plaintiff opened its case on the 12th of May 2011.

 

The Plaintiff’s Parts Manager and Acting Country Manager, Charles Martey gave evidence to the effect that the Defendant had taken delivery of the machine and spare parts but refused to pay for same despite several demands on him to do so.  In support of the above assertion the Plaintiff tendered in evidence Exhibits  “A”, ”B” and “B1” which were the invoices for the machine and parts.

 

Mr. Martey went on further to state in his evidence that the goods were in fact delivered to the Defendant and that the machines are currently in their possession.  He tendered in evidence, a number of correspondences between the parties in support of the Plaintiff’s case, (Exhibits “C”, “D”,& “E”).  Exhibit “F” is a reply from the Defendant to one of the letters referred to above, in which Defendant stated that they were sourcing funds from the UK to make some payment to the Plaintiff.

 

It is trite learning that after a Plaintiff has adduced sufficient evidence to discharge the burden on it, the burden shifts to the Defendant to debut the Plaintiff’s case by leading evidence.  The Defendant herein also had a duty to cross-examine Charles Martey.  There is abundant case law on the effect of a party not cross-examining a witness.  The principle was enunciated by Brobbey J (as he then was) in the case of Hammond v. Amuah [1991] 1 GLR 89 at pg 91 as follows:

 

“The law is quite settled that where a party makes an averment and that averment is not denied, no issue is joined and no evidence need to be led on that averment.  Similarly, when a party has given evidence of a material fact and is not cross-examined upon it, he need not call further evidence on that fact.  See Fori v. Ayirebi (supra).  Indeed it was held in the case of Quargraine v. Aikins [1981] 1 GLR 599, CA that where a party made an averment and his opponent fails to cross-examine on it, the opponent will be deemed to have acknowledged sub silentio, that averment by failure to cross-examine"

 

In the case of Takoradi Flour Mills v. Samir Faris [2005-06] SCGLR 882, Ansah JSC referred to the case of Tutu v. Gogo, Civil Appeal No. 25/67, dated 28th April 1969, Court of Appeal unreported; digested in 1969 CC76 where Ollenu JA said that:

 

“In law, where evidence is led by a party and that evidence is not challenged by his opponent in cross-examination, and the opponent did not tender evidence to the contrary, the facts deposed to in the evidence are deemed to have been admitted by the party against whom it is led, and must be accepted by the Court”.

 

As stated above, the Defendant did not lead any evidence at all.  The position of the law was succinctly put in the case of In Re Krah (decd); Yakeraah and Others v. Osei-Tutu and Anor [1989-90] 1 GLR 638 at 639 SC as follows:

“Having failed to put their case across, the Defendants must be presumed to have accepted the case put forward by the plaintiff unless an amendment was made and evidence led to support the amendment.” 

 

In my opinion, Charles Martey led credible and cogent evidence to prove Plaintiff’s case that the Defendant was in fact indebted to it, and I believe him.  I will therefore give judgment in favour of the Plaintiff on the four corners of Charles Martey’s evidence.  I will accordingly hold that Plaintiff is entitled to the reliefs it is seeking and order that Defendant pay to Plaintiff the amounts of Euros 183,368.00 and US$16,738.16 or their cedi equivalents, together with interest at the contractual rate of 20% per annum from 1st January 2010 to date of final payment.

Costs of GH¢3,000 awarded against Defendant.     

 

                                                                                                                                                                              BARBARA ACKAH-YENSU (J)

JUSTICE OF THE HIGH COURT

COUNSEL

NAA ODOFOLEY NORTEY                   -        PLAINTIFF

 

 

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