Ghana High Court: Cola Holdings Judgment Enforcement Case Against Cheddar Dismissed

• The High Court in Accra dismissed Cheddar's application to restrain Cola Holdings from enforcing a $14.9 million judgment.
• Cola Holdings holds identifiable assets within Ghana, which can be used to enforce the foreign judgment.
• The court awarded costs of GH¢20,000 against Cheddar and declined to award punitive costs.

The court found that Cola Holdings holds identifiable assets within Ghana, which can be used to enforce the foreign judgment.

The High Court in Accra has dismissed an application by businessman Nana Kwame Bediako (alias Cheddar) to restrain the enforcement of a $14.9 million judgment obtained by UK-based Cola Holdings Limited. The court, presided over by Justice Doris Awuah Dabanka-Bekoe of the Commercial Division, found that Cola Holdings holds identifiable assets within Ghana, which can be used to enforce the foreign judgment. This ruling reaffirms the principle that a judgment creditor can enforce a foreign judgment against a debtor with assets within the jurisdiction, even if the debtor disputes the validity of the judgment.

The court's decision was guided by established principles governing stays of execution pending appeal. Specifically, the judge applied the principles set out in Joseph v Jebeille and affirmed by the Supreme Court in NDK Financial Services Ltd v Yiadom Construction and Electrical Works Ltd. The court found that Bediako's grounds of appeal did not establish arguable points of substance sufficient to warrant injunctive relief. This ruling has significant implications for debt recovery in Ghana, as it underscores the importance of identifying assets within the jurisdiction to enforce foreign judgments.

The High Court's decision is a crucial reminder for lawyers advising clients on debt recovery in Ghana. The court's reaffirmation of the principle that a judgment creditor can enforce a foreign judgment against a debtor with assets within the jurisdiction highlights the importance of identifying and securing assets to ensure successful debt recovery. This ruling will have far-reaching implications for businesses and individuals seeking to recover debts in Ghana, particularly those involving foreign judgments.

Lawyers advising clients on debt recovery in Ghana should note that the High Court has reaffirmed the principle that a judgment creditor can enforce a foreign judgment against a debtor with identifiable assets within the jurisdiction, even if the debtor disputes the validity of the judgment.

Source: Original reporting via Graphic.com.gh