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Court throws out STC’s motion
Accra, June 5, Ghanadot/GNA - The
Fast Track High Court (Commercial Division) on Thursday
threw out a motion for stay of execution filed by Intercity
STC Coaches Limited in respect of a matter between the
company and Svani Limited, a firm that deals in vehicles and
accessories.
The court in its judgment on May 12 ordered Intercity STC
Coaches to pay 607,470 pounds or its equivalent, being money
it owed Svani Limited, for failing to pay for the supply and
use of 13 luxurious buses.
It held that there was overwhelming evidence that STC acted
in bad faith and asked STC to pay interest on the 607,740
pounds from December 2007 to the date of final payment.
Meanwhile estimates as of today put the interest at 612,000
pounds. The court further awarded cost of 60,000 pounds
against STC.
STC used the Eicher buses supplied from India for more than
one year to generate revenue only to reject them after the
company had been sued. The Managing Director of STC, Mr
Kwame Adjei-Sefa, explained that the STC Board of Directors
did not approve of the purchase of the buses.
At Thursday’s sitting Ms Justice Margaret Insaidoo, the
trial judge, refused the application and awarded cost of GH¢500
against Intercity STC Coaches Limited adding that the amount
should be paid before they pursued an appeal.
STC Coaches Limited in a stay of execution contended they
were aggrieved at the judgement of the court and therefore
filed the appeal to that effect.
According to STC the appeal had chances of succeeding on
appeal.
STC contended that the judgement of the court was full of
flaws and should be stayed pending the hearing of the
appeal.
According to STC, the court erred when it held that the
transaction between the parties was a sale whereas there was
copious evidence on record to show that it was on an
alliance basis.
However, Svani limited opposed the application saying it was
without merit and that its sole object was to delay their
enjoyment of the fruits of the court’s judgment.
Svani Limited said STC failed to prove the existence of an
alliance agreement between.
GNA
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