Court halts Investcom's Arbitration in London

Accra, Dec. 7, 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=A2 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. 07 Dec 07.