The Commercial Case Law Index is a collection of judgments from African countries on topics relating to commercial legal practice. The collection aims to provide a snapshot of commercial legal practice in a country, rather than present solely traditionally "reportable" cases. The index currently covers 400 judgments from Uganda, Tanzania, Nigeria, Ghana and South Africa.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-matter expert postgraduate students from the University of Cape Town.
The appellant is a commercial bank and the respondent a holder of several accounts in the bank. The Imo State Task Force for the Recovery of Public Property and Funds (the task force) alleged that the respondent used contracts to defraud the Imo State government and paid the proceeds into the said accounts with the appellant.
The respondent admitted that the moneys in the two accounts operated with appellant were payments he received from the contracts which he failed to perform. The task force ordered the transfer and freezing of funds in these accounts pursuant to the Recovery of Public Funds and Property (Special Provisions) Edict, 1985, section 18(1). After hesitation and unfruitful communication with the respondent, the appellant consequently complied with the order of transfer and freezing of the funds in the account.
The courts below held that the action as constituted was a banker/customer relationship. Therefore, the court had jurisdiction to hear the matter.
However, this court held that the matter went beyond an ordinary banker/customer relationship. The freezing of the account of the respondent and subsequent transfer of the funds therein to government's’ bank account were acts done under Edict No. 7 of 1985. Thus, the cause of action was consequently not subject to litigation.
This case concerned the appellant's entitlement to notice of meeting prior to removal as company director. The appellant claimed relief for a declaration that his purported dismissal was a repudiatory breach of his contract of employment and that he was denied the right to a notice meeting pursuant to sections 236, 262 and 266 of Companies and Allied Matters Act (CAMA).
The counsel for the respondent contended that against the background of the appellant's contention the trial court had no jurisdiction to entertain the complaint. Given the above claim of the appellant, he should have approached the Federal High Court for the resolution of his complaint of the breaches and not the trial court.
This court held that the dismissal of the appellant was not lawful because of lack of due process. However, the trial court below lacked jurisdiction and since the trial court lacked the jurisdiction to enter the matter, the lower court, equally, lacked the jurisdiction to deal with the appeal before it. Thus, the appeal was found to be unmeritorious and was struck out for want of jurisdiction.
The case concerned the jurisdictional issue that was raised and whether the lower court had the jurisdiction to adjudicate upon the matter. Furthermore, the court considered whether a party was entitled to raise a new issue on appeal which hadn’t been previously canvassed. It was found that where a party seeks to raise a fresh issue on appeal, he must seek leave of the court. It was stated that it can never be too late to raise the issue of jurisdiction due to its fundamental and intrinsic nature and effect in judicial administration. The issue of jurisdiction is the court’s authority to hear the suit. If a court lacks the jurisdiction to hear the suit and proceeds to entertain it, the proceedings and judgment amount to a nullity. It was found that none of the below courts had jurisdiction to hear the suit and as a result the appeal court could not exercise its jurisdiction. Appeal dismissed.
This was an appeal against the decision of the Court of Appeal to strike out the appellant’s appeal on the ground that it only paid a fraction of the filing fee.
The respondents had filled an action claiming monetary compensation for a diesel spill from the appellant's facility which polluted the respondents’ water. The appellant admitted the spillage and judgment was passed against it. On appeal it paid N200 instead of N5000 to file documents into the registry. The respondents urged the court to dismiss the appeal on the basis of this and other irregularities. The appeal arose from an attempt by the appellant to regularise the payment of fees prior to the filing of the appeal but this was dismissed as incompetent due to payment of inadequate fees.
The court considered whether the lower court was right to strike out the appeal. It observed that a discretionary decision based on a principle that inadequate filing fees was fatal to an appeal was a wrong exercise of discretion. The court differentiated non-payment of fees from payment of inadequate fees. It held that a court of law could not allow the provisions of an enactment to be read in a way that would deny citizens access to court, thereby denying a litigant access to justice. It found that the lower court’s striking out of the appeal denied the appellant access to court.
Accordingly, the appeal was upheld and the appellant ordered to pay the correct fees.
The main issue faced by the court in this matter was whether an appeal could be allowed to proceed when the notice of appeal is incompetent.
On the assertion that the notice was defective for failure to reflect names and addresses of the parties, the court was quick to dismiss the objection as baseless as the error was a mere irregularity which could not affect the hearing of the appeal on merits. It reasoned that a liberal interpretation must be followed thus non-compliance per se could not be a ground for nullifying a proceeding unless it could amount to a denial of justice. Since the requirement of endorsement of names and addresses was a measure of convenience and not mandatory, it could not render the notice invalid.
On the contention that the notice did not relate to any suit, the court acknowledged the presence of incongruities between record of appeal and the notice to an extent that there was no nexus between the two. Further, it observed the incompleteness of the record, defects which amounted to a failure in invoking the court’s jurisdiction. The court decried the applicant’s failure to remedy the above defects by way of motion on notice to the lower court, a defect it held to be fundamental and stems to the very root of the appeal process. The court thus held the appeal was effectively incompetent and therefore there was no jurisdiction to hear the appeal.
The matter involved an appeal over a decision made about a contractual dispute between the appellant and the respondent.
The first issue was whether the trial court had jurisdiction to consider a contractual matter between an individual banker and his bank. The court engaged with the interpretation of the relevant constitutional provision (s 251(1)(d)) as given by the Supreme Court and established that it granted concurrent jurisdiction between federal and state High Courts in customer-bank matters. The court reasoned that the provision is an exception to the exclusive jurisdiction enjoyed by federal courts. It concluded that the trial court had jurisdiction, though concurrent, to decide the matter at issue.
The second issue was whether there had been sufficient proof at the trial court to support judgment in favour of the respondent. Acknowledging that this issue required the court to embark on a re-evaluation of the evidence, the court emphasised that interference could only be done if it is shown that the trial court’s judgment was perversely flawed. After reviewing the trial court processes, the court concluded that there was a failure to properly evaluate the totality of all evidence, particularly determining what was admissible or inadmissible, before making its decisions. Since there was proof of an absence of a nexus link between the conclusions of the court and the proven facts, the appellate court could thus interfere and re-evaluate the evidence. The trial court’s judgment was therefore found to be fraught with error and was set aside.
The subject-matter of this appeal concerned the enforceability of an English court order on the parties’ dispute. The first and second respondents argued in the court below that the appellant and third respondent were in breach of the order of a lower court, and so they sought an order restraining its enforcement. The trial judge admitted a copy of the English court’s ruling but made further other orders affirming the subsistence of the lower court ruling which led the appellant to lodge an appeal on multiple grounds.
Regarding the main appeal, the court endorsed the first and second respondents’ argument that the third respondent ought to be compelled to observe the subsisting order of the lower court. It affirmed the inherent power of the court to act where an existing court judgment is flouted to uphold the integrity of the judiciary. Such an issue may be raised by either party orally, by formal application, or raised by the court itself.
Although the appellant was not part of the suit and lacked the requisite legal standing without formal application, that it was a beneficiary of the English court’s order meant that the trial judge was justified to restrain it from enforcing the order. However, the appellant had been incorrectly found to be jointly liable with the third respondent for flouting the judgment of the court below, so it experienced some success on this count.
On the challenge of the trial court’s jurisdiction to make one of its pronouncements, the appellate court found that the judge had unlawfully addressed the substance of a forthcoming application. This violated the well-established principle that a court must make its findings and orders on the same grounds of argument it has received from the parties. This issue was therefore resolved in the appellant’s favour.
Overall, the appeal was meritorious and allowed in part.
The appellant, a federal government agency, claimed that the first respondent, in the lower court, sought relief while the matter was still pending in the high court and the jurisdiction was exclusive to the federal high court according to the constitution. The court considered whether the lower court had the jurisdiction for the withdrawal of a building plan that was an executive decision by the appellant.
The court held that s 230(1) of Decree 107 of 1993 (‘the decree’, now s 251 of the constitution) automatically ousted the jurisdiction of the Lagos State High Court. This provision gave the federal high court exclusive jurisdiction in administrative or executive decision by the federal government or its agencies. The court also held that any decision or proceedings emanating from such a court are a nullity.
The court found that the lower court did not have jurisdiction according to s 230(1) of the decree.
Accordingly, the court upheld the appeal.
The court considered whether money accruing to the state can be subject to a garnishee order and whether the trial court had jurisdiction to entertain the proceedings.
This case concerned an appeal of a garnishee order on the basis that the court below erred in adjudicating upon the matter as a it did not have the requisite jurisdiction.
On the first issue, the court found that money had accrued to the state and thus they were entitled to the garnishee order.
On the second issue, the court the court found that jurisdiction is not exercised at large but must be exercised within the confines of the law. In effect, a court can only be clothed with jurisdiction if and only if it was competently constituted in the proceedings before it.
The factors which determine jurisdiction of a court are 1) the subject matter of the case is within its jurisdiction; 2) there is no feature of the case which prevents the court from exercising jurisdiction and 3) the case comes before the court initiated by due process of law.
Therefore, the court found that the trial court had acted within the confines of their jurisdiction.
This was an appeal of the decision of a lower court to grant the respondents leave to amend their writ of summons in terms of substituting the 1st to the 12th plaintiffs with their personal representatives and guardians. The writ was taken out in the names of the deceased victims of the fire incident occasioned by the appellant. The appellant, via a notice of preliminary objection challenged the jurisdiction of the court to hear the application having been brought by deceased persons. This preliminary objection was not dealt with by the lower court in its decision.
The court held that the lower court committed a serious error when it did not consider a preliminary objection which challenged the jurisdiction of the court. A court must always establish that it has jurisdiction before it deals with any matter such as the merits of an amendment.
The court further held that the law recognizes two categories of persons who can sue and be sued. They are natural persons with life, mind and brain; and other bodies or institutions having juristic personality.
Accordingly, a dead person ceases to have legal personality and can neither sue nor be sued.
Therefore if the original writ of summons and initiating process are void, the court lacks jurisdiction to entertain or enter judgment in the matter. Based on the above principles, the court upheld the appeal and struct out the claim for want of jurisdiction.
The appellant and respondent of this case entered into an agreement of service relating to aviation. The respondent as plaintiff before the lower court alleged that the appellant has not paid the amount determined in the contract in full. The trial court ruled in favour of the respondent (as plaintiff).
The court considered whether the trial court had jurisdiction over the matter under s 251 of the Constitution. The court held that the court has jurisdiction over matters relating to aviation. Both parties were engaged in the business of aviation and their dispute arose out of this activity. Consequently, the lower court had jurisdiction.
The court further considered whether the trial court had jurisdiction although the writ of summons did not contain the respondent’s address. Further, the court considered whether the trial court had jurisdiction despite the presence of an arbitration clause in the contract. The court held that the right to complain about irregularities is waived if it is not exercised in due course. It found that the appellant failed to object before the lower court and, therefore, waived the right.
The court was also asked to determine whether the lower court adequately evaluated the evidence presented before it. The court held that the party that files a counter-claim must proof that claim. It found that the appellant in this case did not provide evidence for the claim. Consequently, the court concluded that the lower court adequately evaluated the evidence.
All grounds for appeal were dismissed.
This case concerns liability for damage caused to a vessel.
The court considered whether the trial court had jurisdiction over the second appellant which was only served indirectly. The court held that where a party does not object to any irregularity or invalidity in the service of process on him before
The trial court, he waives his right. In this case the second appellant, then defendant, did not object. Consequently, the court found that the trial court did indeed have jurisdiction.
The second ground of appeal was declared incompetent.
The court also considered whether the trial court had taken into account all evidence. It held that where a trial court unquestionably evaluates the evidence adduced and appraises the facts, it is not the business of the appellate court to substitute it is own view. The court was satisfied that the trial court took all evidence into account, although it was not explicitly referred to in the judgement. Consequently, the court decided against the appellants.
The court finally considered whether the negligence precludes the right to limit liability. It held that the ship master is the alter ego of the vessel on behalf of the owner. Consequently, the owner, together with the other appellants, was held jointly and severally liable.
The appeal was dismissed.
The issue was whether the state high court has jurisdiction over matters that are governed by the Investment and Security Act (the act). The case emanated from a dispute where the appellant was being sued in the court aqua for defrauding the respondents of units of shares. The appellant had raised a preliminary objection that the trial court lacked jurisdiction over the matter which was dismissed. The appellant thus was challenging the dismissal of the objection.
The appellant argued that the trial judge erred in dismissing its objection on the basis that jurisdiction of the high court is limited and excludes matters that are regulated by the act. The appellant pointed out that disputes around the act should be determined by the Investment and Security Tribunal (the tribunal).
The respondent opposed the appeal on the grounds that the trial judge was correct because the jurisdiction of the high court was unlimited. They argued that the dispute emanates from torts, conspiracy and fraud which fall within jurisdiction of the high court and that the act was unconstitutional.
The court ruled that s 270 of the act establishes the tribunal to resolve disputes that fall under the act. It observed that s 284 of the act give the tribunal exclusive jurisdiction to determine matters regarding capital markets. It held that the dispute revolved around capital market operator (appellant) and its clients (respondents) hence it falls within the exclusive jurisdiction of the tribunal. It concluded that the trial judge erred and the appeal was upheld.
Contract Law – payment of money – specific performance Civil procedure – jurisdiction - ratio decidendi
This was an appeal against a garnishee order granted by the court. The appellant contended that the garnishee proceedings were null and void because the first respondent did not disclose that the second respondent fell within the jurisdiction of the lower court. Further, the appellant argued that there was abuse of court process because the garnishee order was made after the appellant was granted leave to appeal.
The respondent argued that the appellant was not a party to the garnishee proceeding and cannot challenge the procedure.
In deciding the matter, the court held that the question of the judgement creditor establishing that the garnishee was within jurisdiction was not for the judgement debtor to determine but the court. It found that the appellants were not parties to the garnishee proceedings and that an appeal does not operate as a stay of execution. The appeal was thus dismissed.
The issue was whether the trial court had jurisdiction to hear a petition for winding up and whether the respondent had required authorization to petition for winding up.
The appeal emanated from the dismissal of the appellant’s objection to a petition for winding up the appellant company. The appellant argued that the trial court had no jurisdiction to decide on the matter. It pointed out that only the English courts had exclusive jurisdiction to decide on any dispute between the parties. Moreover, the appellant challenged the legal personality of the respondent arguing that they did not provide original certificates of incorporation and that the respondent did not receive authority of shareholders to petition for the winding up.
The respondent opposed the appeal on the grounds that the English courts had exclusive jurisdiction only on disputes and not on a petition for winding up. It further argued that it required a trail to verify the authenticity of the certificate of incorporation. Lastly the respondent pointed out that since they were duly incorporated, they were authorized to work on behalf of the shareholders.
The court in dismissed the first two points raised by appellant. The court held that the English court’s exclusive jurisdiction did not extend to petitions and that documents attached to an affidavit in an interlocutory application should not be used as an objection to the issue of admissibility. However the court ruled that the respondent required the approval of directors and shareholders to file a petition to wind up. Thus the appeal was upheld.
The court considered whether the failure to omit the court name in a notice of motion and error in arrangement of parties invalidated the application.
The court held that a notice of appeal is the foundation and any defect to it renders the whole appeal incompetent. In that regard, to validly invoke the jurisdiction of a Court of Appeal, it must be shown that the decision appealed against arose from the courts listed in s 240 of the Constitution.
The court found that the particulars of the claim did not invoke the jurisdiction of the court of appeal which is a material defect. Moreso, cannot be cured by an amendment. Therefore, the court was not able to grant the reliefs claimed.
The court accordingly dismissed the application.
The court considered whether the State High Court had jurisdiction to entertain a matter about mines and minerals.
The court held that according to s 251(1)(n) of the Constitution as amended, the Federal High Court had jurisdiction about mining operations.
The court found that the statement of claim showed that the cause of action accrued in 1996; therefore, the law that was in existence at that time is applicable. Further, the court found that the construction, operation and maintenance of an oil pipeline by a holder of oil prospecting license is an act of mining operations. The facts of the case therefore fell within s 230(1)(0) of the 1979 Constitution. The trial court lacked jurisdiction.
The court accordingly upheld the appeal.
The appellants appealed a judgment granting the respondent payment of a sum of money in terms of an indemnity agreement between the parties.
There were four issues for determination in the main appeal: whether the lower court had jurisdiction to hear the matter; whether the personal indemnity form did not constitute a contract between second appellant and first respondent to make second appellant personally liable to indemnify first respondent; whether the deposit of the second appellant’s title deeds with the first respondent was in furtherance of the personal indemnity form; and whether the judgment was against the weight of evidence.
As regards the first ground of appeal, the court found that the lower court was vested with the jurisdiction to hear the matter, as stated in the Insurance Act, 2003. The second ground was resolved in favour of the first respondent as the indemnity form was held to be a contract with the main aim of making the second appellant personally liable to indemnify the first respondent. Issue 3 was found in favour of the first respondent as the words of the document were found to have created an equitable mortgage over the second appellant’s property, using it as collateral to secure the counter indemnity granted by the first respondent on behalf of the second appellant. The fourth issue was resolved in favour of the first respondent, and the appeal was held to be lacking in substance and merit. The appeal was dismissed.
This was an application praying for special leave to appeal against the interlocutory decision of the Court of Appeal refusing a repeat application for stay of execution pending appeal.
The court considered whether the Court of Appeal misconstrued its jurisdiction under art. 138(b) of the Constitution or s. 12 (b) of the Courts Act. The court was of the opinion that the applicant failed to prove the constitutional requirement for special leave to appeal in s. 4(2) of the Supreme Court Act by failing to prove that the interlocutory appeal was likely to succeed. The court held that the applicant failed to prove that the single judge misused or abused his discretionary power. Accordingly, the application was dismissed.
The application before the court concerns a multilayered application for summary judgement, an application for a writ to set aside consent judgement, an application to dismiss the writ and an application to the High Court to stay execution among others.
The court had to consider whether the High Court exceeded its jurisdiction (i) when it varied the ruling dismissing the 4th interested party’s application for the stay in execution pending the appeal, (ii) when it substituted the order to stay execution pending the appeal that had already been decided upon. Lastly, (iii) whether the High Court exceeded its jurisdiction regarding the 4th interested party for the suspension of the enforcement of consent judgement.
The court held that the application on the grounds (i) and (ii) be granted but dismissed the (iii) ground. The court went on to order a stay in execution pending determination before the appellate court. The court was of the view that the judges in the lower courts fell into an error of law and committed procedural irregularities.
The application was granted except on the 3rd ground, which was dismissed.
The applicant sought an order setting aside the judgement of the trial court due to a procedural flaw.
The court had to consider whether the trial court acted without jurisdiction when it struck out the application for a stay in proceedings.
The court held that the trial court, in not carrying out the required procedure when it struck out the application, acted without jurisdiction.
The court stated that the trial judge erred by allowing the respondent to make oral application and ought to have informed the respondent to file an application to relist the motion that was struck out. The court went on to say that it was settled practice that a formal application is required to restore motions that were previously struck out. As a result, the trial court, in deviating from settled practice acted without jurisdiction.
Consequently, the application for certiorari succeeds and the ruling of the trial court was quashed.
In this appeal, the court considered whether the Court of Appeal had erred in upholding the respondent’s writ as per established rules. The court observed that the validity of the writ affected the jurisdiction of the trial court. The court held that the writ was competent since the court had to decide who had a better title to the property.
The court also considered whether there were legitimate grounds for the Court of Appeal to reverse the decision of the trial court on the disputed questions of fact. The court held that the Court of Appeal was right to intervene in order to make a judicial correction, based on the record of appeal, since the conduct of the 1st appellant was fraudulent. Accordingly, the appeal was dismissed, the decision of the Court of Appeal affirmed and the respondent’s right to injunctive reliefs succeeded.
One of the judges expounded on the whether the Court of Appeal exceeded its jurisdiction by questioning an order of a public tribunal. The judge noted that the writ was made by appointees of the tribunal not the tribunal and could be questioned by the court.
The application was lodged as a response by the applicants (General Legal Council) to a decision of the Court of Appeal setting aside orders granted to them allowing for the suspension of the respondent from legal practice. The applicants sought leave to appeal against this decision.
In response, the court began its adjudication from the position that a special leave application is not concerned with substantive issues but rather with whether it satisfies the case law principles that there must either be (a) a prima facie error on the face of the record, or (b) a general legal principle arising for the first time, and or (c) that the Supreme Court decision on the appeal would be advantageous to the public.
The court assessed the grounds propounded by the applicants which in essence included allegations of fundamental errors that go to jurisdiction and which a determination by the Supreme Court would be advantageous to the public. The court reasoned that these issues were so important that a decision on them would have a public good. It therefore decided to allow the application.
This case concerned whether the Supreme Court had the authority to quash a judgment handed down by the court below. The applicant contended that the court below lacked jurisdiction to interpret articles 127 (3) and 161 of the 1992 Constitution. The court considered the difference between interpreting a constitutional provision and applying a constitutional provision. It was found that all courts and adjudicating authorities are obliged to apply the provisions of the Constitution. Therefore, it would be a denial of justice to parties if constitutional provisions are not considered by a court of law or any adjudicating authority. Furthermore, it is only when the issue of interpretation arises that a court must stay its proceedings and refer the matter to the Supreme Court. In this matter, the court below was not called upon to interpret any provisions of the Constitution but merely to ascertain where the Registrar was a holder of a judicial office and whether the holder of a judicial officer had judicial power. The court found that Article 161 of the Constitution did not define judicial power. Therefore, not all judicial officers exercise judicial power. The court found that the court below had not committed and error that destroyed its jurisdiction, thus there was nothing warranting the Supreme Court to be called upon to quash the judgment handed down by the court below. Application dismissed.
The plaintiff sought a writ (being a written order of the court to abstain from acting) against the defendants. The plaintiff asked the court to find that the court below did not have jurisdiction to determine matters involving the interpretation and enforcement of the Constitution. The defendants in turn raised a preliminary objection to the plaintiff’s writ.
This case considered the preliminary objection raised in objection to the writ and whether the court had jurisdiction to entertain the plaintiffs action calling for a writ against the defendants, thus did the plaintiff properly invoke the jurisdiction of the court and whether the proper parties were before the court.
The court found that in determining whether its jurisdiction had been properly invoked, they were obliged to look at the preliminary objection of the writ before them.
The plaintiff argued that a single judge lacked the jurisdiction to determine matters involving the interpretation and or enforcement of the Constitution.
The court found that its jurisdiction had been properly invoked. On the second issue the court found that the Plaintiff had capacity to bring the application before this court.
The court found that the first defendant was properly cited and was a party in this application, however the second defendant was not a party to the action as the plaintiff did not show any act or omission which would justify the plaintiff citing him.
The second defendant was therefore struck out.
Preliminary objection overruled.
The Financial Intelligence Centre applied to the High Court to freeze the assets of the applicants who were being investigated for trafficking narcotic drugs. The applicant contended that the High Court exceeded its jurisdiction when it dismissed an application to dismiss the freezing of assets, because the law provided that this must be done for one year only; however in this case a year had since lapsed. It was also contended that the High Court had exceeded its jurisdiction to impose directions on how the case should be tried, and more broadly that the freezing of the account was in breach of the rules of natural justice.
The court held that the High Court acted contrary to the law when it did not exercise its jurisdiction to defreeze the assets, as the courts have supervisory jurisdiction. A year had lapsed and hence it was an error of law to not grant the order to defreeze the assets. The court which has supervisory jurisdiction has the power to defreeze assets if the one-year period has lapsed.
The High Court gave a summary judgment in favour of a party relating to a declaration of title to a house, payment of accumulated rent and an order of ejection. The Court of Appeal overturned the judgment but invoked supervisory jurisdiction to make an order compelling issuing of land title to the interested party.
The court held that the interested party could not apply for the supervisory jurisdiction for a judgment that was overturned – and this was impermissible. A party is not permitted to undermine a decision of an appellate court overturning a decision of the trial court to apply for supervisory jurisdiction when the judgment to be supervised has been set aside. For these reasons the application to set aside the supervisory orders was set aside.
The matter involved a dispute concerning the nature and validity of the transaction between the defendant, a government-owned limited liability company, and Karpower. The matter revolved around the interpretation given to the phrase ‘international transaction’ in article 181 of the Constitution, a phrase whose effect is that the transaction required parliamentary approval.
The first question that faced the court concerned jurisdiction. The court relied on ample case law to arrive at the position that the Supreme Court is not a clearing house to assume jurisdiction which otherwise belongs to other lower courts. It noted that jurisdiction would only be exercised where it is manifestly clear and obvious that the cases are deserving.
Substantively, the court then had to consider the legal nature of the defendants in order to ascertain whether they were the alter ego of the government. After scrutinising the relevant transactions, the court reasoned that it was clear that the defendants, as juristic persons, had the capacity to enter into the transactions they entered into with the relevant institutions without seeking parliamentary approval as stipulated in article 181 (5) of the Constitution.
The court concluded that given the established interpretation of ‘international transaction’ and the legal nature of the defendants, the nature of transaction between the first defendants and Karpowership does not constitute an international business transaction with a government. It therefore did not require compliance with article 181 (5) of the Constitution.
The court dismissed the application.
The Supreme Court was approached to review a clarificatory decision previously delivered by the Supreme Court’s ordinary bench.
First the court considered whether it had jurisdiction to review its previous decision. It relied on rule 54 of Supreme Court Rules 1996 (C.I 16) which grants it the power to review decisions under certain circumstances. It rejected the argument that a clarificatory decision is not a decision under rule 54. The court therefore concluded that it had the power to review its previous decision.
The court then had to consider whether exceptional circumstances existed and have resulted in miscarriage of justice. It held that where a decision fails to consider a statute, case law, fundamental principle or procedure, exceptional circumstances which justify review of the decision exist. In this case, the clarificatory decision was based on a repealed statute and failed to consider the applicable statutory provisions. Consequently, court reviewed and rectified its previous decision to align it with the correct statutory provisions on the computation of interest on judgement debts.