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COMMERCIAL  COURT CASES

 

IN THE SUPERIOR COURT OF JUDICATURE, IN THE HIGH COURT OF JUSTICE GHANA, (COMMERCIAL DIVISION) HELD IN ACCRA ON WEDNESDAY THE 11TH DAY OF MAY 2011 BEFORE HIS LORDSHIP MR. JUSTICE I. O. TANKO AMADU

 

SUIT NO. BDC3/20

THE ATTORNEY – GENERAL                -                       PLAINTIFF

VRS.

BALKAN ENERGY CO. LLC. & 2ORS.  -                       DEFENDANTS

 

 


 

1.         The issue for determination in this application is not novel to our jurisprudence.

 

2.         It involves once again the determination of whether a question or an issue before any other court in the land relating to the enforcement and interpretation of the constitution of Ghana 1992 ought to be referred to the Supreme Court for such interpretation or enforcement in accordance with Article 130(1) of the Constitution whenever such issue or question arises.

 

3.         For a better understanding of the instant application, it is important to trace briefly the history of this dispute. The Plaintiff/Applicant herein is the Attorney General of the Republic of Ghana who commenced action by writ in this court for reliefs endorsed in the writ of summons. There has been in the course of pursuing this suit an international arbitration in accordance with a clause of the contract between the parties. Without prejudice to the arbitration process, issues were joined and the suit set down for trial. While the trial was yet to commence the Plaintiff/Applicant filed this application seeking an order of this court to refer the following questions to the Supreme Court.

 

“(a).     Whether or not the Power Purchase Agreement dated 27 July 2007 between the Government of Ghana and the 2nd Defendant constitutes an international business transaction within the meaning of Article 181(5) of the 1992 constitution and

 

(b).      Whether or not the arbitration agreement contained in clause 22 – 2 of the Power Purchase Agreement dated 27 July 2007 between the Government of Ghana and the 2nd Defendant constitutes an international business transaction within the meaning of Article 181(5) of the 1992 Constitution.

 

(iii).      Whether or not in view of a legal opinion and a letter dated 26 October 2007 respectively issued by the Plaintiff, the Plaintiff is estopped from seeking an enforcement interpretation or application of the terms of Article 181(5) of the 1992 Constitution.

 

(iv).      Whether the defence of estoppels is available in matters regarding the enforcement, interpretation or application of the terms of the constitution”.

 

4.         Embodied in the motion before me is a relief for an order of stay of proceedings pending the determination of the referral to the Supreme Court and other consequential reliefs for the expeditious determination of the application.

 

5.         There is in support of the application an affidavit in support which has exhaustively traced the history of this dispute between the parties.

 

6.         In paragraph 18 of the affidavit in support, the Plaintiff/Applicant has set out the reasons why the application has to be filed immediately after the pretrial conference it being a constitutional issue of interpretation which is the exclusive preserve of the Supreme Court and which cannot therefore lie within the jurisdiction of the trial High Court.

 

7.         The Defendants/Respondents has opposed the application and in an affidavit in opposition deposed to by a lawyer in the firm of lawyers for the Defendants, the Defendants contend inter alia that the Supreme Court has considered and interpreted Article 181(5) of the constitution and therefore it requires no further interpretation. The Defendants/Respondents further contend in their affidavit in opposition that there is no statutory or constitutional requirement for parliamentary approval of arbitration agreements. I donot with all due respect to Defendants/Respondents’ counsel consider as relevant the other matters set out in the Defendants/Respondents affidavit in opposition for the determination of this application.

 

8.         Since the coming into force of the 1992 constitution, a number of questions have been referred to the Supreme Court involving the interpretation of one or more of the provisions of the constitution. Authorities therefore abound on the subject and the Supreme Court has by its pronouncements in previous cases set down guidelines which will regulate the exercise of its exclusive jurisdiction pursuant to Article 130(1) of the Constitution of Ghana 1992.

 

9.         In their legal submissions during the hearing of this application, both counsel have referred me to the decision of the Supreme Court in ATTORNEY GENERAL VRS. FAROE ATLANTIC CO. LTD. [2005 – 2006) SCGLR 271 which significantly was not decided by the Supreme Court in the exercise of its referral jurisdiction, but its appellate jurisdiction arising from the decision of the court of Appeal. I shall refer to the decision in FAROE ATLANTIC later in this ruling.

 

10.       In the case of the REPUBLIC VRS. SPECIAL TRIBUNAL EX -PARTE AKOSAH [1980] GLR 592 the then Court of Appeal set down the following as the grounds on which the issue of enforcement or interpretation of the 1979 Constitution would arise, and I must say that the grounds set out are relevant and applicable even under the current  1992 Constitution.

 

            The eventualities the then Appeal Court set down are:

(a).      Where the words of a provision were imprecise or unclear or ambiguous. Put in another way, it would arise if one party invited the court to declare that the words of the article had a double meaning or were obscure or else meant something different from or more than what they said;

 

(b).      Where rival meanings had been placed by the litigants on the words of any provision of the constitution.

 

(c.)       Where there was a conflict in the meaning and effect of two or more articles of the constitution and the question was raised as to which provisions should prevail and

 

(d).      Where on the face of the provisions there was a conflict between the operation of particular institutions set up under the constitution”

 

11.       It is against the background of these guidelines and other decisions of the Supreme Court under the 1992 Constitution that I will consider this application in context given the grounds set out in the Plaintiff/Applicant’s affidavit for an order for referral by this court.

 

12.       In the latter case of THE REPUBLIC VRS. HIGH COURT (FAST TRACK DIVISION) ACCRA EXPARTE ELECTORAL COMMISSION (METTLE NUNOO AND OTHERS) INTERESTED PARTIES, Wood JSC (as she then was) held inter alia that:

 

“On the authorities, the question as to whether on the facts of any given case, real or genuine interpretative issues for referral has arisen depends among other things on the nature of the pending action, the reliefs sought as well the pleadings. And on this, a further useful criterion is whether or not the action is one which has been neatly clothed as a case in which our original jurisdiction is required. Another critical factor is whether or not a disputed interpretation lies at the heart of the action. If it does, it qualifies for our intervention. Indeed, it was precisely because of the parties’ divergent and irreconcilable views on the true meaning of the relevant provisions that in the AKOSAH case [1980] GLR 592 CA the court thought that a genuine issues of interpretation had arisen”

 

13.       The issue for determination in this application is whether the parties to the substantive action hold divergent views on the interpretation to be given to the words or clause(s) of the constitution for a situation of a referral for interpretation to arise. Another consequential question from the authorities is whether the issue raised for referral has already been subjected to interpretation by the Supreme Court in which case notwithstanding the relevance of the question it would be unnecessary and indeed a moot question to refer for another interpretation by the Supreme Court.

 

14.       With respect to the earlier interrogatory I donot think the Plaintiff/Applicant’s issues set out are one of divergent positions by the parties with respect to the interpretation of a provision of the Constitution. In my view it is with respect to a particular issue of whether or not the contract between the Plaintiff and the 2nd Defendant ought to have been subjected to parliamentary approval in accordance with Article 181(5) of the 1992 Constitution.

 

15.       That issue to my mind does not give rise to a situation of a referral to the Supreme Court where there is an existing precedent on the interpretation of the Article of the constitution concerned and may be properly determined by this court by reliance on judicial precedent within the context of the particular facts of the case. It may also be subjected to determination by the Supreme Court itself in the exercise of its original jurisdiction in accordance with Article 2(1) of the constitution if same is properly invoked.

 

16.       The case of ATTORNEY – GENERAL VRS. FAROE offers an answer. In that case which as I had observed the Supreme Court exercised an appellate and not a referral jurisdiction, the Supreme Court held inter alia at Holding 5 that:

 

The plain meaning of clause (5) of article 181 of the 1992 constitution would appear to be that where the Government of Ghana entered into “an international business or economic transaction” it must comply with the requirements mutatis mutandis, imposed by Article 181 of the constitution. Those requirements would clearly include the laying of the relevant agreement before parliament in terms of clause (1).

And under clause (2) the agreement was not to come into operation unless it was approved by a resolution of parliament .................”

 

Said Date – Bah JSC “my interpretation of ...........clause (5) of Article 181 of the current constitution, is that international business or economic transactions are to be treated, mutatis mutandis, as the same as loan agreements, from the point of view of the requirements contained in Article 181. This, to my mind, means that an international business transaction or international economic transaction to which the government is a party must be submitted to parliament for approval even though the nature of the obligation embodied in such transaction is not one of debt”.

 

The same view was expressed by Sophia Akuffo JSC with respect to the scope of Article 181 of the 1992 constitution in relation to the mandatory constitutional requirement of prior parliamentary approval in all international business transactions or international economic transactions in which the Government of Ghana is a party.

 

17.       That is the current position of judicial authority in relation to international business or economic transactions in which the government of Ghana is a party and the agreement giving rise to the instant suit may not be an exception. With respect to issue (iii) set down in the motion for referral I think the answer can be found in the position of Wood JSC (as she then was) when she said in the FAROE ATLANTIC case that:

                       

“The proposition established by In Re an arbitration, Mahmoud and Ispahani [1921] 2KB 716CA is that the plea of res judicata cannot apply to illegal contracts. The power purchase agreement is not an illegal contract, but the underlying principle in Mahmoud is also valid for contracts which are void for constitutionality. We have a constitutional duty to interfere with the award. This gross violation of the Supreme law of our land, which has rendered an otherwise lawful contract unconstitutional cannot be validated by estoppel doctrine of res judicata. Indeed IN RE KWABENA STOOL: KARIKARI VRS. ABABIO III [2001 – 2002] SCGLR 515 puts the matter beyond disputation. In this case this court unanimously speaking through Ampiah JSC observed that 

“.............Estoppels of all kinds are subject to one general rule; they cannot override a statutory provision. Thus where a particular formality is required by statute no estoppel will cure the defect”.

 

18.       Then came the latter decision of the Supreme Court in the case of REPUBLIC VRS. HIGH COURT (FAST TRACK DIVISION) ACCRA EX – PARTE COMMISSION ON HUMAN RIGHTS AND ADMINISTRATIVE JUSTICE (RICHARD ANANE INTERESTED PARTY). The facts of this case are too notorious to every student of constitutional law and I will not reproduce them. Suffice it to say that it also involves the interpretation of provisions of the constitution establishing and empowering the Commission on Human Rights and Administrative Justice in relation to the scope and procedure before the jurisdiction of the Commission can be said to have been properly invoked to investigate allegations of corruption against a public officer. Specifically however, the court was called upon to determine whether or not by the provisions of the constitution and the COMMISSION ON HUMAN RIGHTS AND ADMINISTRATIVE JUSTICE (Complain procedure) Regulations 1994 CI 47 Reg. 11 – (3) the Commission can exercise jurisdiction to investigate Dr. Anane over allegations of corruption in the public domain at the time in the absence of a formal complain from an identifiable complainant.

 

19.       Once again it is pertinent to state that the Anane case as is now commonly referred to was decided in the exercise of the Supreme Court’s supervisory jurisdiction though the principles set out relative to interpretation are relevant and applicable to the nature of the questions forming the basis of the Plaintiff/Applicant’s application for an order for referral in the instant application.

 

20.       One of the principles set down by the Supreme Court in Anane is that “Whenever there were no disputed facts to be resolved, for either a determination of whether or not a genuine question for interpretation had arisen or for a formulation of the issue for referral, the referral ought to be made without delay. Furthermore, the trial court should not presume that there was no issue for interpretation: it would be a safer course of action for the trial court to refer the matter to the Supreme Court rather than assume there was no real issue for interpretation or that its view of the constitutional provision was more likely to be correct than that of five or seven Supreme Court Justices put together. That certainly cannot be as it would be preposterous for a single trial High Court to assume a position that would tantamount to equating itself to the collective wisdom of the Supreme Court.

 

21.       This is to my mind however is not a rule of general application because each case ought to be considered on the peculiar facts and circumstances it presents for determination as well the legal principles laid down by binding judicial precedent. Indeed even in Anane’s case the Supreme Court preferred an order of referral to be made in situations where there is no existing precedent on the matter a position which confirms their earlier decision in AGYEKUM VRS. BOADI.

 

22.       In that case of AGYEKUM VRS. BOADI [2000] SCGLR 282, the Supreme Court had laid down a principle of abiding value and guidance which by virtue of the Article 129 (3) of the 1992 constitution is binding on this court. In that case which arose because a circuit trial judge had referred an issue for determination to the Supreme Court to wit.

           

“(i).      Whether or not the deconfiscation order directed by the President of the 4th Republic through the Confiscated Assets Committee in respect of the property of the Plaintiff was in contravention of the letter and spirit of the 1992 constitution in particular sections 35(1) and (2) of the transitional provisions and (ii) whether or not section 3 of the Confiscated Assets (Removal of Doubt) Law 1993 (PNDCL 325) was in contravention of Section 35 (2) of the Transitional Provisions”

The supreme Court held that though a lower court such as this court was empowered under Article 130(2) of the 1992 constitution to refer a question of law to the Supreme Court, where that question has already been determined by the court no reference would arise because the court intending to refer that question of law was bound under Article 129 (3) of the 1992 constitution to follow the decision of the Supreme Court. In that case, the issue referred by the trial circuit Judge had already been interpreted in the Commission on Human Rights and Administrative Justice No. 1 Vrs. Attorney – General [1998 – 99] SCGLR 871.

 

23.       From my exhaustive reading of the Anane case, the decision in AGYEKUM VRS. BOADI has not been departed from, nor overruled. I am also not aware of any decision of the Supreme Court with respect to the referral of questions and issues by lower courts pursuant to Article 130(2) of the 1992 constitution in which the decision in AGYEKUM VRS. BOADI has been held not to be good law or made per incuriam. It therefore remains binding judicial precedent which I shall follow in determining this application.

 

24.       In the instant, application both counsel have referred me to the decision of the Supreme Court in FAROE ATLANTIC. It follows that the issues set down for referral having already been determined by the Supreme Court in the Faroe Atlantic case, the referral of those issues is no longer necessary by any lower court and this court is bound by the earlier determination in the FAROE ATLANTIC case.

 

25.       In my view, the application by the Plaintiff/Applicant for an order for referral of the very issues settled by the Supreme Court is at variance with the benign advance heralded by the decision in AGYEKUM VRS. BOADI and carried forward by the decision in the Anane case.

 

26.       The determination of the issues cannot be available through the referral procedure pursuant to Article 130(2) of the 1992 constitution and it is for all the reasons I have set out, that this application must fail and is accordingly dismissed.

 

 

 

JUSTICE I. O. TANKO AMADU

JUSTICE OF THE HIGH COURT

 

 

 

 

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