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Commercial
Court halts Investcom's Arbitration in London
Accra, Dec. 7, Ghanadot/GNA-The Commercial Court in Accra on
Thursday granted an application brought before it by Yonny
Kulendi, an Accra legal practitioner, praying it to place an
injunction on an arbitration proceedings currently going on
between Investcom Consortium Holdings S A of Beirut, major
shareholder in Scancom Limited and its business partners in
London.
In its ruling yesterday, the court contended that while the
same case in which a Ghanaian businessman, Mr Richmond
Aggrey had sued the company, and was claiming 20 per cent
shares in Scancom, operators of Areeba Mobile Phone
Services, now MTN, was pending before it, it would be
against the course of natural justice to allow the
arbitration to proceed in far away London.
Consequently, the court, presided over by Mr Justice Henry
Kwofie restrained the arbitrators from continuing with their
arbitration proceedings in London, to enable it to determine
the matter before it.
He awarded a cost of eight million cedis (GH¢ 800) against
Investcom.
On November 19 this year, Mr Kulendi, counsel for Mr Aggrey,
moved a motion on notice at the Commercial Court for an
interlocutory injunction to restrain Investcom from
proceeding with the arbitration in London.
In his submissions, Mr Kulendi argued that as a party to the
proceedings before the court, he wondered why after having
entered appearance and filed a defence, Investcom
simultaneously proceeded with the arbitration in London.
Counsel prayed the court for an unambiguous and express
order to restrain the arbitrators, since in his view, the
Commercial Court which was hearing the matter, had the legal
and constitutional right to protect the sanctity of the
proceedings.
He submitted that his client would suffer irreparable damage
and loss if the application was not granted, and the
arbitration was allowed to go on.
Mr. Kulendi described the move made by Investcom as
"unimaginable" harrasment, contending that for Investcom to
continue to arbitrate outside when the matter was being
looked into by a court within, was tantamount to closing his
client's right to the doors of natural justice.
Mr. Felix Ntirakwa, counsel for Investcom, told the court
that the right of his client to have the matter determined,
had not been abandoned.
Counsel submitted that by initiating the arbitration
proceedings in London, his client was only exercising its
right to arbitration under the shareholders' agreement.
Mr. Ntirakwa argued that in doing so, his client did not
need the leave of the court, submitting that Investcom's
action should not be interpreted to mean a disrespect to the
court.
Counsel submitted that the arbitration was a serious
business, and therefore Investcom stood to lose if the order
was made to restrain it from arbitrating in London with its
business partners.
GNA
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