Court Rejects Areeba's Application

By William Yaw Owusu

Saturday, 09 December 2006
THE Commercial Court in Accra yesterday dismissed a stay of proceedings application filed by Scancom Ghana Limited, operators of Areeba mobile phone service, in the case in which Richmond Aggrey, a Ghanaian businessman is claiming 20 per cent shares in the company.

The court, presided over by Justice Henry Kwofie, also awarded ¢10 million cost against Areeba, the second defendant in the suit filed by Mr Aggrey, a former Vice-Chairman of Areeba.


Other defendants in the suit are Investcom Consortium Holdings S.A. of Beirut, Lebanon, and Grandview Management of Texas, United States.


The court, on July 14, granted Mr Aggrey an exparte application to restrain the defendants from going ahead to conclude a merger agreement with the MTN Company of South Africa.


Mr Aggrey had argued that “continuing and / or concluding a merger with and / or acquisition of Investment LLC by MTN without taking into account and/or providing for the plaintiff’s 20 per cent shares in Scancom Limited will occasion the loss of his shareholding in the company by reason of the accrual of the rights of MTN Group as third party.”


Following the development, Areeba filed an application on July 24, to strike out Mr Aggrey’s action “in part or whole” on the grounds that he failed to adhere to procedures in filing the application.


The court on October 20, however, ruled that the processes followed by Mr Aggrey in instituting the suit were proper and ordered Areeba to file its defence within 14 days.


Consequently, Areeba filed a notice of appeal to challenge the court of Appeal’s ruling and another motion on notice to stay proceedings pending the appeal.


This was however dismissed yesterday.


In his ruling, Justice Kwofie held that the trial court “has no jurisdiction to grant this application,” saying, Areeba should have gone to the acourt of Appeal to ask for the stay of proceedings.


Areeba, he said did not disclose any special circumstances to “warrant a stay of proceedings in this matter.”


Immediately the court read out the ruling, Mr Benson Nutsukpui, counsel for Areeba, said: “We are entitled to seven days to enable us advise ourselves and we ask for adjournment.”


But Mr Yonnie Kulendi, counsel for Mr Aggrey, opposed Areeba’s submission saying the defendants are not entitled to any seven days. We ought to proceed with this matter.”