Case LawGhana
RADDY & ORS VRS AMPEM II (J4/67/2023) [2024] GHASC 27 (22 May 2024)
Supreme Court of Ghana
22 May 2024
Judgment
IN THE SUPERIOR COURT OF JUDICATURE
IN THE SUPREME COURT
ACCRA – A.D. 2024
CORAM: PWAMANG JSC
AMADU JSC
KULENDI JSC
GAEWU JSC
ADJEI-FRIMPONG JSC
CIVIL APPEAL
NO. J4/67/2023
22ND MAY, 2024
1. JOSEPH JOHN RADDY
2. JOHN BITAR
3. VIKIL ABDULLA ESSAKA
(SUBST. BY YUSIF IBRAHIM) 3RD & 4TH DEFENDANTS/APPELLANTS
4. ABUBAKA ESSAKA (SUBST. BY /APPELLANTS
MOHAMMED AWAL)
VRS
NANA TUTU AMPEM II …………. PLAINTIFF/RESPONDENT/RESPONDENT
J U D G M E N T
ADJEI-FRIMPONG JSC:
My Lords, the events surrounding the subject matter of this appeal, which is Plot No.
106 Old Town Section B, Adum Kumasi, date back to 1927. It all started when on
October 19 of that year, the then Government of Ashanti acting through the Chief
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Commissioner of Ashanti granted a 50-year lease of the Plot to one Nana Kwaku
Nsebetuo, the chief of Akyiawkrom (confused with Akyinakrom, Akyaakrom).
Sequel to the grant, Nana Nsebetuo went into some agreement with a certain Naja
David and the 1st Defendant herein to develop the plot. As part of the material terms of
the agreement, the developers would construct on the same plot, four storerooms which
they would occupy as tenants, and four dwelling rooms with one kitchen and toilet to
be occupied by Nana Nsebetuo. The cost of the construction together with a loan facility
of 300 pounds which they advanced to Nana Nsebetuo was to be amortized through
the monthly rent of 14 pounds or 168 pounds yearly, payable by them for occupying
the four storerooms. The tenancy was said to be renewable. However, by 20th July
1955, the aggregate cost of the construction and the liability on the loan had been
amortized to end that phase of the transaction. Also, by that date, Nana Nsebetuo had
been destooled as chief of Akyawkrom. By and large, all these facts were free from any
dispute by the close of trial.
Another fact also turned irrefutable. The lease of 1927 (henceforth called the headlease)
had been granted in the personal name of Nana Nsebetuo. Following his destoolment
however, one Kwaku Mensah and some elders of Akyiawkrom instituted an action in
the Circuit Court against him. Essentially, they claimed, that even though the headlease
was granted in his personal name, it was actually made for the benefit of the
Akyiawkrom stool. In a judgment dated 4th October 1930 in favour of Kwaku Mensah
and the elders, title in the plot was decreed for the Akyiawkrom stool.
What then prompted the instant action?
The pleading of the Plaintiff/Respondent/Respondent (hereinafter called “the
Respondent”) indicates that after the initial agreement with Naja David and the 1st
Defendant had ended, it fell on Nana Owusu Akyiaw II (the original Plaintiff) who had
then become the chief of Akyiawkrom to renew the agreement with the 1st Defendant
and Naja David. Naja David had however left the scene and so Nana Owusu Akyiaw II,
together with one Boakye Agyemang, a linguist, entered into the agreement with the
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1st and 2nd Defendants over the four storerooms. The agreement, made on 18 July 1955
became the subject of controversy in this suit. It was to cover a period of 12 years 30
days to commence on 1st September 1965 at a yearly rent of 91.13.4d pounds.
According to the Respondent, Nana Owusu Akyiaw was made to believe that the
agreement was for the tenancy of the four stores and that the property would revert to
the stool upon its expiration. There were covenants in the agreement including one
against the 1st and 2nd Defendants’ parting with possession of the demised premises or
any part thereof without the consent in writing of the Asantehene, the government of
Ghana and the Respondent.
The Respondent further pleads that at the expiration of the tenancy, it turned out that
the 1st and 2nd Defendants had purportedly assigned the entire property to one Aisha
Nana, wife and mother respectively of 3rd and 4th Defendants/Appellants/Appellants
(hereinafter called the Appellants). The Respondent’s attempt to regain possession of
the four stores had been resisted by Aisha Nana who died in the course of time and for
whose estate letters of administration were granted to the Appellants. Meanwhile, avers
the Respondent, his side had been in occupation of the rest of the property apart from
the four stores for over 60 years without any interference from the Appellants.
The Respondent contended that the agreement executed between him and the 1st and
2nd Defendants was a tenancy agreement and not an assignment of the residue of the
unexpired term of the headlease. The document executed between the 1st and 2nd
Defendants and Aisha Nana showed that the 1st and 2nd Defendants never obtained the
requisite consent before the purported assignment of the unexpired term. And whilst
the headlease granted in 1927 had expired in 1977, the Appellants were making efforts
to have the headlease renewed in their names at the Lands Commission. Indeed, as we
gather from the record, the Appellants whilst the instant action was already pending,
actually succeeded in getting the Lands Commission engross a fresh lease in their favour
as successors to Aisha Nana, much to the displeasure of the Respondent.
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The Respondent therefore for himself and on behalf of the Stool, commenced the
instant suit claiming the following reliefs jointly and severally against the 1st and 2nd
Defendants and the Appellants:
1. A declaration that the instrument (copy attached) executed between the Plaintiff
and the 1st and 2nd Defendants and dated 8-7-55 with 10-9-65 as commencement
date is a Tenancy Agreement for the four stores built on Plot No. 106 Kumasi
and not a demise assigning 12 years and 30 days being the residue of the term
of 50 years granted to the Plaintiff by a headlease to the 1st and 2nd Defendants.
2. A declaration that as between the Plaintiff’s Stool and the defendants, Plaintiff is
better entitled to the renewal of the Headlease referred to supra.
The 1st and 2nd Defendants did not attend the trial. They had however caused a defence
to be filed on their behalf. In it, they averred inter alia:
“6. 1st and 2nd Defendants say that by an Indenture dated the 8th July, 1955,
Plaintiff assigned House No. O.T.B. 106, Kumasi, together with all his other
interests therein to them for the residue then unexpired of the 50 years term
created by the headlease.
8. Save admitting that the document of 8th July, 1955 forbade 1st and 2nd
Defendants from parting with the demised property or any part thereof without
the consents, paragraph 19 of the Statement of Claim is denied by the 1st and
2nd Defendants.
9. 1st and 2nd Defendants say in further answer to paragraph 19 that the said
consents were obtained. In any case 1st and 2nd Defendants will contend that the
said consents were rendered unnecessary by section 1(6) of the Lands
Commission Act, 1971.”
For their part, the Appellants denied the Respondent’s claim that the agreement of 8th
July 1955 which he relied upon was a tenancy agreement. To them, the agreement was
an assignment of the residue of the unexpired term of the headlease. It was also their
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case that the requisite consent was obtained by the 1st and 2nd Defendants before the
said assignment. In any event, according to them, their claim is based on a deed of
assignment dated 25th March 1976 which was registered at the Land Registry. They
alleged that the structures the Respondent and his people had been occupying on the
Plot were unauthorized. They also attacked the Respondent’s action as vexatious, since
it was the fourth suit he had mounted in respect of the same property two of which
were still pending as Suit No. LC 19387 and LC 145/86. It was their further plea that
the instant action was statute-barred.
Judgment of the Trial Court
The learned trial judge upon hearing the parties and witnesses decreed judgment for
the Respondent against all the Defendants therein (the 1st and 2nd Defendants and the
Appellants). Reaching his decision, he subjected the controversial agreement of 8th July
1955 between the Plaintiff and the 1st and 2nd Defendants, (Exhibit A) to some critical
analysis. He determined that Exhibit A was a tenancy agreement and not an assignment
of the residue of the unexpired term of the headlease as the Appellants had contended.
He further determined, out of the said agreement that the 1st and 2nd Defendants had
covenanted not to assign or sublet the property without the consent of the Respondent
and the Asantehene. Not finding any such consent, he held that the 1st and 2nd
Defendants breached the covenant. It was also his finding that Aisha Nana did not
investigate the title of the 1st and 2nd Defendants before proceeding to acquire the
property from them and that, if she had done so, she would have found that the 1st and
2nd Defendants had no title to convey to her. The culmination of the trial judge’s decision
is captured in the following words of his:
“It must be pointed out that at the time of the expiration of the lease granted by
the Golden Stool to AKYIAWKROM STOOL, AKYIAWKROM STOOL had four
storerooms four bedrooms, a kitchen and a toilet situate on plot No. OTB 106
Adum Kumasi. AISHA NANA had no property situate on that plot. She was neither
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a lessee or [sic] sub-lessee in possession of that plot. AISHA NANA therefore
obtained the fresh lease of that plot by falsely representing that she had acquired
same from Joseph John Raddy and John Bitar. Joseph John Raddy and John Bitar
had no title to convey that property to AISHA NANA. The registration of the
subject property did not therefore confer any legal right or interest in AISHA
NANA. I hold that the Lands Commission erred when it bypassed AKYIAWKROM
STOOL and issued the fresh lease to AISHA NANA.”(page 158, Vol. 1 ROA)
On the strength of the above, the learned trial judge declared that as between the two
sides, the Respondent was better entitled to the renewal of the headlease. He ordered
the Appellants to yield possession of the four storerooms to the Respondent. Not
stopping at that, he ordered the cancellation of the lease issued in favour of Aisha Nana
and further ordered the Lands Commission to issue a fresh lease in favour of the
Respondent.
Dissatisfied, the Appellants appealed to the Court of Appeal on the following original
and additional grounds:
1. That the judgment was against the weight of evidence
2. The Honourable trial court erred when it ordered the cancellation of the fresh
lease in favour of the Defendants/Appellants when there was no mandatory
obligation on the Plaintiff’s grantor to renew the lease in the Plaintiff’s favour.
3. The Honourable trial court erred when it held that the Plaintiff/Respondent was
the lessee when at the time of the renewal of the lease in favour of the 3rd and
4th Defendants/Appellants, there was no subsisting lease in favour of the
Plaintiff/Respondent.
4. The Honourable trial court erred when it held that Aisha Nana had never been in
possession of the premises and at the same time ordered the 3rd and 4th
Defendants/Appellants who were her assigns and privies to yield possession and
occupation of the premises.
5. The Honourable trial High Court erred as it contradicted itself by holding that the
Defendants did not obtain the consent of Otumfour in renewing the lease after
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having found on evidence that the Lands Commission renewed the lease on
behalf of Otumfour Osei Tutu for the 3rd and 4th Defendants/Appellants.
Decision of the Court of Appeal
The learned justices of the Court of Appeal found no merit in the appeal. By way of
highlights, they affirmed the finding of the trial judge that Exhibit A was a tenancy
agreement and not an assignment. They also agreed that the Respondent was better
entitled to the fresh lease and impugned the decision of the Lands Commission to
issue the lease to the Appellants. To their minds, Aisha Nana could not have obtained
any proper title to the land from the 1st and 2nd Defendants and that the subsequent
engrossment of a lease in favour of her successors (Appellants) by the Lands
Commission was not supportable. This was more so when at the time, the instant
suit was already pending. And even though they disaffirmed the trial judge’s finding
that Aisha Nana made false representation to the Lands Commission as no such
misrepresentation was pleaded by the Respondent, they nonetheless thought that
was not the sole basis of the trial judge’s decision. They again rejected the position
that by ordering the issuance of the fresh lease the trial judge imposed a contract
on the Lands Commission and the Respondent. Consequently, they dismissed the
appeal in its entirety. Still undaunted, the Appellants appeal in this Court.
Grounds of Appeal to the Supreme Court
The grounds of appeal before us are as follows:
a. The Honourable Court of Appeal erred when it failed to hold that the
Plaintiff/Respondent/Respondent has no subsisting interest in the disputed
property immediately before and at the time of the renewal of the lease in favour
of the 3rd and 4th Defendants/Appellants/Appellants.
b. The Honourable Court of Appeal erred when it failed to hold that there was no
mandatory duty and or obligation on the Plaintiff/Respondent/Respondent’s
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grantor to renew the expired lease in favour of the
Plaintiff/Respondent/Respondent.
c. The Honourable Court of Appeal erred when it held that the
Plaintiff/Respondent/Respondent was better placed to have the expired lease
renewed.
d. The Honourable Court of Appeal erred when it held that “Exhibit A” which was
tendered in evidence at the trial by the Plaintiff/Respondent/Respondent was
intended to be a Tenancy Agreement instead of an assignment.
e. The Honourable Court of Appeal erred when it held that the Lands Commission
renewed the lease in favour of the 3rd and 4th Defendants/Appellants/Appellants
solely on the basis of a misdescription of the Stool name.
f. The Honourable Court of Appeal erred when it held that the Honourable Trial
Court by asking the Lands Commission to prepare a new lease in favour of the
Respondent did not amount to imposition of a new contract on the parties.
g. The Honourable Court of Appeal erred when it held that Nana Nsebetuo acquired
the property in a representative capacity when there was no evidence to that
effect on record and or tendered by the Plaintiff/Respondent/Respondent.
h. The Honourable Court of Appeal erred when it held that the issuance of a fresh
lease by the Lands Commission in favour of the 3rd and 4th
Defendants/Appellants/Appellants was contrary to article 296 of the 1992
Constitution.
i. The judgment was against the weight of evidence on record.
We shall at the very outset single out ground (g) and dispose of it summarily. The
ground did not arise from the judgment on appeal before us. We have combed through
the judgment of the Court of appeal and found no such holding that Nana Nsebetuo
acquired the subject property in a representative capacity. Not even before the trial
High Court did the issue arise as contestable. The parties themselves never set down
any such issue. The issues the learned trial Judge considered germane for determination
were:
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“a. Whether or not Joseph John Raddy and John Bitar entered into a tenancy
agreement with Akyiawkrom Stool.
b. Whether the document attached to the Writ of Summons is a tenancy
agreement for 4 stores only in House No. OTB 106 Kumasi or not.
c. Whether or not there was any residue unexpired of the term of 50 years
granted in the Headlease of Plot No. OTB 106 under the agreement.”(151-152
Vol.1 ROA)
Noticeably, the 1st and 2nd Defendants in paragraph 4 of their statement of defence
averred that by a judgment of the Circuit Court, Kumasi dated 4th October 1930, the
property became vested in the Akyinakrom Stool for the residue of the term of the
lease. That averment was however, not in denial of any particular paragraph in the
Respondent’s statement of claim. No issue could have been properly joined on it to
make it contestable. In any event, it emerged at the trial that evidence of the judgment
of the Circuit Court was in the records of the Lands Commission. If there was ever any
doubt about the 1st and 2nd Defendant’s averment, it was settled, and the point was
laid to rest.
It is a settled principle that a ground of appeal must arise from the judgment appealed
against. If not, it is baseless and incompetent. Put differently, a ground of appeal must
challenge the decision appealed against and for good measure, attack the ratio of that
decision. In our well-considered view, when Rule 6 subrule 5 of the Supreme Court
Rules, (C.I 16) requires that a ground of appeal must disclose a reasonable ground
appeal, that is what it means. The provision is this:
“(5) No ground of appeal which is vague or general in terms or discloses no
reasonable ground of appeal shall be permitted, except the general ground of
appeal that the judgment is against the weight of evidence.; and any ground of
appeal or any part of it which is not permitted under this rule may be struck out
by the Court on its own motion or on application by the respondent.”
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A ground of appeal formulated on an issue not arising from the judgment on appeal
discloses no reasonable ground in terms of this rule and is patently incompetent. In
OKAFOR V ABUMOFUANI (2016)12 NWLR Pt. 1252 page 134—135, the Nigerian
Supreme Court delivering itself through Amiru Sanusi JSC said of a provision similar to
ours thus:
“Now a close look at the appellants’ ground 1 as reproduced above vis-à-vis the
judgment appealed against, there is nowhere in the said judgment where the
court below alluded to the motion in question which formed the basis of and
indeed was the crux of the appellant’s complaint. The court below never made
any pronouncement on the appellant’s complaint about the 1st and 2nd
respondent’ issues for determination as adumbrated in the appellant’s motion
dated 24/3/2005. There was therefore no decision of the court below on the
issue, as would warrant and justify the appellant to raise a ground of appeal on
it and formulate the issue or point. There is long unending chain of authorities
which establishes that for a ground of appeal to be valid and competent, it must
be related to the decision being appealed against and should constitute a
challenge to the ratio of the decision on appeal. It is also trite law that, where a
ground of appeal formulated does not arise from the judgment and purports to
raise and attack an issue not decided by the judgement appealed against as
shown in the instant appeal, the same, therefore becomes incompetent and liable
to be struck out…”
To the same effect, the same court per Onnoghen JSC in C.C.B. PLC V EKPERI (2007)3
NWLR (Pt. 1022) 493 at page 509 opined:
“I therefore agree with the submission of learned counsel for the respondent
that the complaint in the original sole ground of appeal contained in the Notice
of Appeal does not relate to the decision of the Court of Appeal allegedly
appealed against. It is clear that the sole ground of appeal does not arise from
that judgment. It is settled law that for grounds of appeal to be valid and
competent, they must be related to the decision being appealed against and
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should constitute a challenge to the ratio of the decision on appeal. It is still good
law that where a ground of appeal as formulated does not arise from the
judgment and purports to raise attack on issue not decided by the judgment
appealed against as is evident in the instant appeal, the same becomes
incompetent and liable to be struck out.”
What appears to be a similar attitude of this court is observable in the case of FENU &
ORS V DREDGING INTERNATIONAL LTD [2017-2020]2 SCGLR 125 at 131—132 where
the court took a swipe at Counsel for wrongly attributing a statement to the Court of
Appeal in formulating a ground of appeal thus:
“Our only serious objection to the ground is the fact that the learned counsel for
the appellants has quoted a passage and attributed same to the learned justices
of the Court of Appeal. We do not find this statement to have been made by the
Court of Appeal in the ruling of 26th April 2016, which is on appeal before us…
Nowhere in the record of proceedings of the Court of Appeal dated 26th April
2016, were the statement quoted above, sated as a ground of appeal. We find
this ground as clearly misleading and proceed to dismiss same as unmeritorious.”
In effect, for the reason that the Appellants’ ground (g) does not arise from the
judgment of the Court of Appeal before us in the sense demonstrated in the passages
above quoted, we find the ground incompetent and proceed to strike out same.
Having dealt with ground (g) this way, we shall attend to the remaining grounds of
appeal. We shall first determine ground (d) which turns on whether the agreement
between the Respondent and 1st and 2nd Defendants tendered as Exhibit A was intended
to be a tenancy agreement or an assignment. Before the trial High Court, the case was
fought mainly on the line drawn between the parties on this issue. The learned trial
judge having set down the issues he found germane to resolve in the case proceeded
as follows:
“To be able to resolve these issues satisfactorily, it is necessary to look critically
at the tenancy agreement Exhibit A which the plaintiff tendered in evidence to
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support his claim. That agreement was executed by NANA OWUSU AKYIAW II
and BOATENG AGYEMANG on one side and JOSEPH JOHN RADDY and JOHN
BITAR on the other side. The agreement contains certain covenants but the
covenant which is pertinent to the determination of this dispute is at pages 2
and 3 of Exhibit A…
The most important words used in this paragraph are landlords and tenants. The
AKYIAWKROM STOOL was described as Landlords while JOSEPH JOHN RADDY
and JOHN BITAR were described as Tenants. Upon execution of that agreement
the relationship that same [sic] into existence was that of Landlords and Tenants.
There is therefore evidence on record to support a finding that in the year 1955,
AKYIAWKROM STOOL entered into a tenancy agreement with Joseph John Raddy
and John Bitar and let the four storerooms situate on Plot No. OTB 106 Adum
Kumasi to them for a period of twelve years. I also find as a fact that by that
agreement, Joseph John Randy and John Bitar covenanted among others not to
assign or sublet mortgage or part with the possession of the demised premises
or any part of thereof without the prior consent of the Asantehene and
AKYIAWKROM STOOL.” (page 152-153 ROA)
The learned Justices of the Court of Appeal affirmed this position relying mainly on this
Court’s decision in P.Y. ATTA V KINGSMAN ENTERPRISE LTD. [2007-2008] SCGLR 946
the facts of which they found comparable to those of this case. They critically analyzed
the facts and circumstances of the case and agreed with the learned trial judge that
Exhibit A was a Tenancy agreement and not an assignment of the residue of the term.
It strikes immediately that this is a concurrent finding by the two lower courts. Such
finding should not be treated lightly. The policy stance of this apex Court or any
appellate court for that matter is that when concurrent findings of facts are presented
by two lower courts, the appellate court is loath to interfere with those findings. The
Court only makes an exception upon show of special grounds such as there being a
miscarriage of justice or serious violation of some principles of law or that the findings
were erroneous in substantive or procedural law. This principle is well settled in this
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Court. Its full discussion is found in FRABINA LTD V SHELL GHANA [2011]1 SCGLR 429
at 450-451 as follows:
“There are again a lot of decided cases to illustrate instances where the Supreme
Court did depart from the findings of fact made by the trial Court and concurred
in by the first appellate court, such as the Court of Appeal in this instance. In the
recent unanimous decision of the Supreme Court dated 12 May 2010, namely
Sylvia Gregory v Nana Kwesi Tandoh IV [2010] SCGLR 971, the Supreme Court
took pains to state the criteria for departing from concurrent findings of fact
made by the trial and first appellate court in that case…as follows:
First, where from the record the findings of fact by the trial judge are not
supported by evidence on record and the reasons in support of the findings
are unsatisfactory; second where the findings of fact by the trial court can be
seen to be either perverse or inconsistent with the totality of evidence led by
the witnesses and the surrounding circumstances of the entire record; thirdly,
where the findings of fact by the trial court are inconsistent with important
documentary evidence on record; where the first appellate court had wrongly
applied the principle (see Achoro v Akanfela)(supra) and other cases on the
principle, the second appellate court must feel free to interfere with the said
findings of fact, in order to ensure that justice is done in the case.” See also
FOSUA & ADU POKU V DUFIE (DECD) & ADU POKU MENSAH [2009] SCGLR
310; BISI V TABIRI (1987-88)1 GLR 360 and KOGLEX (NO.2) V FIELD [2000]
SCGLR 175.
What arguments have the Appellants put before us and do they meet the threshold for
our departure from the finding that Exhibit A was a tenancy agreement and not an
assignment?
Learned Counsel argues on their behalf that the facts and holding in the case of P.Y.
ATTA V KINGS MAN ENTERPRISE which the Court of Appeal relied heavily on were
distinguishable from those in this case. That case involved the determination of
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assignment and sublease which according to Counsel, is different from the issue about
Exhibit A. The Court of Appeal also misapplied the case of STREET V MOUNTFORD
which decided the difference between tenancy and licence.
Counsel argues that the function of the court was to ascertain what the parties meant
by the words used in the instrument and declare the meaning of what was within the
instrument and not what was intended to have been written. The case of AKIM AKROSO
STOOL & ORS V AKIM MANSO STOOL & ORS [1989-90] GLR 100 is cited for the
proposition that, what the words in a document meant could only be gathered from the
document itself.
Counsel submits that it was the entire unexpired term of the headlease that was
transferred under the Exhibit A making the instrument an assignment. He refers to the
definition of “Assignment” in Section 281 of the Lands Act (Act 1036) thus; “Assignment
means the transfer of the unexpired portion of a term or interest created by a lease,”
He also refers to the learned authors BJ da Rocha and CHK Lodoh in the book
PRACTICAL DRAFTSMAN at page 78 thus; “An assignment is always made subject to
the covenants, conditions and stipulations contained in the head--lease or the head—
sublease.”
Counsel concludes his argument by submitting:
“My Lords, the entire Plot No. OTB 106 Adum, Kumasi which was a subject of
Exhibit A and the transaction under Exhibit A was for a term of twelve (12) years
and thirty (30) days. The unexpired period of the Headlease was also twelve (12)
years and thirty (30) days. The inescapable conclusion is that upon the execution
of Exhibit A, the Plaintiff conveyed all its interest in Plot No. OTB 106 Adum,
Kumasi to the 1st and 2nd Defendants. It is our submission that the Honourable
Court of Appeal ought to have declined the invitation to give consideration
contrary to covenants, conditions and stipulations contained in Exhibit A in
construing same. Having given a contrary consideration to Exhibit A, this ground
of appeal ought to succeed.”
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In response, Learned Counsel for the Respondent is delighted with the admission by his
colleague that consideration is given to covenants, conditions and stipulations in
determining whether a conveyance is an assignment, a sub-lease or a tenancy
agreement. This means it is not only the interest conveyed that determines the issue.
Counsel refers to the case of DAVIS V VIDAL 151, S.W. 290, 291 which shows that due
consideration may be given to the fact that an assignor reserved the right to re-enter
the premises or terminate the assignment upon default by the assignee to render an
instrument a sublease.
In Counsel’s view, taking into account all the circumstances surrounding Exhibit A, the
grant of the whole unexpired residue to the 1st and 2nd Defendants was a mutual
mistake because the intention of the parties looking at Exhibit A as a whole was to
create a sublease or a tenancy agreement of not the entire property numbered OTB
106, but only a portion of it that was hither to in the possession of the 1st and 2nd
Defendants.
Explaining further, Counsel points out that Nana Owusu Akyiaw II and Boakye Agyeman
who thumbprinted the instrument were both illiterates who understood that they were
not relinquishing the Stool’s interest hence their decision five years later, to apply to
surrender the lease for a longer term.
Counsel also disagreed with his colleague’s position that the facts and holding of the
P.Y. ATTA V KINGSMAN ENTERPRISE case were not comparable to the instant case
quoting from the decision of the Court which showed that the Court considered the
entire agreement and circumstances of the case before finding that the document in
question was a sublease notwithstanding the grant of “all the residue of the unexpired
of the said term of 50 years granted by the headlease”.
Moving on, Counsel cites the cases of GORMAN & GORMAN V ANSONG (2012)1 SCGLR
174; OSEI V GHANAIAN AUSTRALIAN GOLDFIELD LIMITED (2003-2004) SCGLR 69;
AMONOO & ORS V DEE (1975)1 GLR 305; MONTA V PATTERSON SIMONS (GHANA)
LIMITED (1974)2 GLR 162 and BUCKLE V BASSIL (1963) GLR 20. Based on the decisions
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in these cases setting out principles of construction of private agreements, Counsel
draws on such clauses contained in Exhibit A as Parties, Rent, Other Covenants, and
Right of Entry to demonstrate his position that they all pointed not to assignment but a
sublease. Counsel then concludes his submission thus:
“The Court of Appeal, thus committed no error when it affirmed the Trial Court’s
holding that Exhibit A was a sublease and not an assignment and for that matter
the sub-lessees in that agreement who were the 1st and 2nd Defendants has no
capacity to assign the property the subject matter of that agreement to Aisha
Nana.”
Determination
It is axiomatic that the purpose of interpretation of an instrument is to ascertain the
intention of the maker. This by no means comes an easy venture. We find the following
passages from the learned authors of Halsbury’s Laws of England most invaluable.
On Object of interpretation, they write:
“It has been said that the object of all interpretation of a written instrument is
to discover the real intention of the author, the written declaration of whose
mind it is always considered to be, and that consequently, the construction must
be as near to the minds and apparent intention of the parties as is possible, and
as the law permits. However, the law is not concerned with the subjective
intentions. All that matters is the objective meaning of the words which the
author of those words has used. The law is concerned with what the user of the
words would objectively have been understood to mean.” (Vol 13, 4th ed.,
(Reissue), p. 86, para 164.
On How intention is ascertained the authors state:
“The intention must be gathered from the written instrument read in the light of
such extrinsic evidence as is admissible for the purpose of construction.
Traditionally it has been said that the function of the court is to ascertain what
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the parties meant by the words which they have used; to declare the meaning
of what is written in the instrument, not of what was intended to have been
written; to give effect to the intention as expressed, the expressed meaning
being, for the purpose of interpretation equivalent to the intention. These
traditional statements must now be read in the light of the changed approach to
the construction of documents to be found in the recent decisions of the House
of Lords. It is not permissible to guess at the intention of the parties and
substitute the presumed for the expressed intention. If however, in any particular
respect, the intention is clear on the whole instrument, effect will be given to
that intention, even though it is not stated in express words. Various implications
and presumptions will also be made where it is necessary or settled by law or
usage to do so.” (para 165).
The instrument must also be read as whole and in the words of the same authors:
“It is a rule of construction applicable to all written instruments that the
instrument must be construed as a whole in order to ascertain the true meaning
of its several clauses, and the words of each clause must be so interpreted as to
bring them into harmony with the other provisions of the instrument, if that
interpretation does no violence to the meaning of which they are naturally
susceptible. The best construction of deeds is to make one part of the deed
expound the other, and so to make all the parts agree. Effect must, as far as
possible, be given to every word and every clause.”(para 174)
An important case the authors cite for what they call the ‘changed approach’ is the
House of Lords decision in MANNAI INVESTMENT CO LTD. V EAGLE STAR LIFE
ASSURANCE CO LTD. (1997)3 ALL ER 352. The facts show that, a tenant served a notice
purporting to exercise his contractual right to determine two leases. The notice however
contained a minor defect regarding the date on which it was to take effect thus deviating
from a strict application of the term of the leases. The Court of Appeal allowed the
Landlord’s appeal from the trial Court’s decision on the grounds that, in purporting to
determine the leases, the notices had not complied strictly with the terms of the leases
Page 17 of 47
and were therefore not effective to determine them. The House Lords in turn allowed
the appeal from the Court of Appeal for the reason that the defect notwithstanding, an
interpretation of the notice in its contextual setting would unambiguously inform a
reasonable recipient that it was to take effect on the proper date in the leases. Lord
Hoffman’s opinion contains a practical explanation of the principle. He delivered at page
375:
“I propose to begin by examining the way we interpret utterances in everyday
life. It is a matter of constant experience that people can convey their meaning
unambiguously although they have used the wrong words. We start with the
assumption that people will use words and grammar in a conventional way but
quiet often it becomes obvious that, for one reason or another, they are not
doing so and we adjust our interpretation of what they are saying accordingly.
We do so in order to make sense of their utterance; so that the different parts
of sentence fit together in a coherent way and also to enable the sentence to fit
the background of the facts which plays an indispensable part in the way we
interpret what anyone is saying.”
To drum home his point, he continued at page 376:
“When, therefore, lawyers say that they are concerned, not with the subjective
meaning but with the meaning of the language which the speaker has used,
what they mean is that they are concerned with what he would objectively have
been understood to mean. This involves examining not only the words and the
grammar but the background as well. So for example, in Doe d Cox v Roe
(1802)4 Esp 185, 170 ER 685, the landlord of a public house in Limehouse gave
notice to quit ‘the premises which you hold of me …commonly called…the
Waterman’s Arms’. The evidence showed that the tenant held no premises called
the Waterman’s Arms; indeed, there were no such premises in the parish of
Limehouse. But the tenant did hold premises of the landlord called Bricklayer’s
Arms. By reference to the background, the notice was construed as referring to
Page 18 of 47
the Bricklayer’s Arms. The meaning was objectively clear to a reasonable
recipient, even though the landlord had used the wrong name.”
In P.Y. ATTA V KINGSMAN ENTERPRISE which was cited in argument, Brobbey JSC in
the judgment opined at page 964-965 of the report:
“Indeed, in considering every agreement, the paramount consideration is what
the parties themselves intended or desired to be contained in the agreement.
The intentions should prevail at all times. From the pleadings, both parties invited
the court to construe exhibit B and to declare its real meaning. There are rules
of construction which must be applied, given the peculiar circumstances of the
instant case. The general rule is that a document should be given its ordinary
meaning if the terms used therein are clear and unambiguous. In the instant
case, the terms used in the agreement are contradictory; while the use of the
words “unexpired” suggested an assignment, the terms inserted in Exhibit B had
the effect of indicating that the document created a sublease. In such a situation,
the rules of interpretation mandate that the document should be interpreted in
a view that would cause the intention of the parties to prevail…No one can really
tell the intentions of parties. Even the devil, it is said, does not know the state
of a man’s mind. In conflicting situations, like those in the instant case, the
process of determining the intentions of the parties should be objective.
“Objective approach” in this context, implies the meaning that the words in the
document will convey to a reasonable person seised with the facts of the case.
In such exercise, the entire document, the effect it has on the parties, the
conduct of the parties and the surrounding circumstances will have to be taken
into account…”
Against this background, his Lordship inter alia held at page 966-967:
“The contention of the defendant company that it knew (per its managing
director) that it had acquired an assignment and not sublease could not be
correct. An assignee is in the position of purchaser. On purchasing the land, the
Page 19 of 47
purchaser simply walks away and does what he likes with it so long as it is
permitted by law. He does not turn round to ensure compliance with what the
seller prescribes. The way the defendant company complied with the terms of
the agreement signed by the parties was not consistent with the buyer of a
landed property.”
By all accounts, it was in the sense of the above that the learned justices of the Court
of Appeal appreciated the issue about Exhibit A. The Court felt and rightly so we think,
that Exhibit A was bedeviled with ambiguity in the sense that, the interest conveyed
was discordant with other parts and indeed the entire circumstances of case. The Court
therefore embarked on an interpretation that would realize the intention of the parties.
It analyzed the problem this way:
“Applying the principle in the P.Y. Atta case, to the instant case, Exhibit A
describes Nana Owusu Akyeaw II and Boakye Agyeman as Ohene and linguist
respectively as the representatives of the elders and Councillors and people of
the said Stool of Akyiawkrom as “Landlords” and Joseph John Raddy and John
Bitar as Tenants. The parties are Landlord and Tenants not Assignor and
Assignees. Again, the lawyers who drafted the agreement described Exhibit A as
a sublease indicating that in the mind of the said lawyers they knew they were
not preparing assignment. At the back page of the indenture the following is
clearly written:
Sub-Lease of Plot. No 106 Old Town Section B, Kumasi. Term: 12 years, 1 month.
Commencing: 1965, September 1st. Expiring 1977 September 30th. Rent as
within. In the case of Kofi Kyei Yamoah Ponkoh, Andrew Okyere, Amoako
Blankson and All Shop Owners of Anomangye Stores Complex, for
themselves and on behalf of 29 others vrs Asomdwe House Co. Ltd.
[2021] DLSC 10762, The Supreme Court per Prof. Mensah Bonsu (Mrs) JSC
stated that the issue of whether or not the Plaintiffs/Respondents in that case
were tenants or part-owners should not only be resolved by closely looking at
the agreement itself but also by examining the history of the relationship
Page 20 of 47
between the parties [Emphasis mine]. If this test is applied, it will be seen that
in this case there is a provision for rent in Exhibit A. ‘The Tenant” also needed
the consent of the “Landlord” and the Asantehene to dispose of any interest in
the property in question. Several other covenants as rightly pointed out by
Counsel for the Respondent were compatible with a landlord and tenant
relationship. These are pointers to the fact that Exhibit A was intended to be a
tenancy agreement.”(page 350, Vol.2 ROA)
Their Lordships made further reference to the test for determining a tenancy as
espoused by Lord Templeman in the case of STREET V MOUNTFORD [1985] UKHL 4
and continued:
“…Lord Templeman’s judgment laid down the three essential elements that must
be present for tenancy to exist. First, there must be exclusive possession.
Second, there must be consideration in the form of a premium or periodical
payments. Third, there must be a grant of the land for a fixed or periodic term.
If these three features are present, then there is a tenancy. In this case, in
Exhibit A the Agreement—there was exclusive possession given to the Appellants
and this is not denied by the Appellants when they assert on several occasions
that they were in effective possession of the stores. Second there was a fixed
period of 12 years and 30 days. Third and finally there was an agreed rent in
Exhibit A which is stated at page 2 of the Indenture…Exhibit A at page 8 of ROA
the very last portion shows evidence of the payment of rent as follows: “Received
the within mentioned sum of Eleven Hundred pounds to be by the within-named
Joseph John Raddy and John Bitar paid to us in satisfaction and discharge of all
rent hereby discharged.” The other covenants and the Right of Entry provisions
all point to a Tenancy Agreement and not an Assignment.”(page 351 Vol.2 ROA)
We fail to see how the learned justices of the Court of Appeal could be faulted by the
above discourse. It was clearly a case that called for a comprehensive analysis of the
full context of Exhibit A to reconcile what seemed a contradiction between the interest
granted and other provisions of the instrument to determine what document the Exhibit
Page 21 of 47
was. This, the learned justices satisfactorily did. When they stated that the instant case
was almost on all fours with the P.Y. Atta v Kingsman, they were clearly talking about
the ambiguities in the terms of both documents (Exhibit B in the P.Y Atta v Kingsman
and Exhibit A in the instant case.) which called for an interpretation that will enable the
courts ascertain the real intention of the parties. Counsel for the Appellants fail to satisfy
us that the Court of Appeal erred on its conclusion on Exhibit A.
But we pause to make an observation about Exhibit A. It appears both sides miss the
point by their common thinking that it was the entire residue of the headlease that was
conveyed in Exhibit A. When we do the arithmetic, we are unable to reach that
conclusion. From the headlease which appears at page 162 to 165 of the Record of
Appeal (ROA), the 50 year lease granted to the Plaintiff Stool (Nana Nsebetuo) started
from 19th October 1927. It meant that the lease was due to expire on 18th October
1977. In Exhibit A the grant to the 1st and 2nd Defendants though made on 8th July 1955
was to start from 1st September 1965 and end on 30th September 1977. Clearly, 30th
September 1977 is eighteen (18) days short of 18th October 1977 when the headlease
was to expire. It therefore appears incorrect as the parties had assumed all along that
it was the entire unexpired period of the headlease that was granted to the 1st and 2nd
Defendants by Exhibit A. If this arithmetic is right, then the mainstay of the 3rd and 4th
Defendants’ argument that Exhibit A was an assignment collapses. For, the remaining
18 days were more than sufficient to render the transaction a sublease not an
assignment. As the learned A.K.P. Kludze explains in his accredited book; Ghana Law
of Landlord and Tenant:
“As regards the assignment of a lease, it is necessary that the whole of the
residue of the term be transferred. If the original tenant retains the slightest
term under the lease, even a day, the transaction does not operate as an
assignment but as sublease. Conversely, if the intention of the tenant is to grant
a sublease, the term granted must be at least a day shorter than the residue of
his own term, otherwise, it operates as an assignment.” (2017 ed., page 44).
Page 22 of 47
In effect, both sides have all along proceeded on the basis that the twelve (12) years
and thirty (30) days conveyed in Exhibit A exhausted the residue of the headlease. This
we think was erroneous. But even if the thinking of the parties was the case, we are
satisfied that other terms and the entire circumstances of the case defeat any argument
that it was an assignment that was granted to the 1st and 2nd Defendants by Exhibit A.
The Appellants’ ground (d) therefore fails.
We come to the remaining grounds of appeal. From the way we see them, they can all
be resolved together. Ground (i) is the omnibus ground of appeal. The omnibus ground
of appeal propounds the case for a fresh consideration of all the facts and the law
before us. It is a ground that invites us to examine the entirety of the record and where
relevant, resolve issues anew. Rightly so in this sense, learned Counsel for the
Appellants when arguing the omnibus ground before us formulates the issue of whether
the evidence on record supports the judgment of the Honourable Court of Appeal for
our determination.
Cumulatively, the remaining grounds (a), (b), (c), (e), (f) and (h) turn on the decision
of the Lands Commission to renew the lease in favour of the Appellants instead of the
Respondent, a decision the two lower courts have impeached. Those grounds in so far
as relevant, raise for our consideration the question whether the Lands Commission’s
decision was impeachable as the Court of Appeal determined. This is what the whole
appeal is about. Consequently, grounds (a), (b), (c) (e), (f) and (h) can be conveniently
addressed together with the omnibus ground of appeal. The overarching issue that
emerges from all those grounds is whether the Court of Appeal’s decision impeaching
the conduct and decision of the Lands Commission is supported by the available facts
and the applicable the law. We proceed to make the determination accordingly. But
first, we set out the arguments of the parties in brief.
Summary of the Appellants’ arguments
Page 23 of 47
First, the Appellants argue that the headlease the Respondent had over the property
was granted on 19th October 1927 for 50 years. As at the commencement of the instant
suit, the headlease had expired. The Respondent therefore had no subsisting interest
for which a renewal could be granted by the Lands Commission. The case of ROYAL
INVESTMENT COMPANY LTD v MADAM RURH QUARCOPOME & ANOR [2021]174 GMJ
285 is cited for the position that the expiration of a lease results in the dissolution of
the relationship between the parties to the lease. SARPONG (DECD)(SUBSTITUTED BY)
KODUAH V JANTUAH [2017-2020]1 SCGLR 736 also holds that once there was no
written document in place for the Respondent at the end of the headlease in terms of
Sections 1,2,and 3(1)(f) of the Conveyancing Act (NRCD 175), no equity could come to
his aid. The Court of Appeal therefore erred when it failed to hold that the Respondent
had no subsisting interest in the disputed property immediately before and at the time
of the renewal of the lease in favour of the Appellants.
The Appellants further argue that the headlease had no renewal clause. Consequently,
upon its determination, no one had a vested right to be offered the option of a renewal
in the absence of a contractual term or a binding legislation. SARHENE VRS SAMUEL
MANU ABAYIE [2012]53 GMJ 125 is cited for the principle that there was no common
law right in a sitting tenant to be given a first option in the absence of an agreement
or a statutory provision. The Court of Appeal, it is contended, misconceived the law on
leases when it took the position that the Respondent was in possession of the property
and was therefore better entitled to a renewal of the headlease.
The Appellants additionally contend that, by its nature, a lease is a contract the terms
of which ought to be mutually agreed between the parties. The option of renewal cannot
be implied by law. BEN MIREKU V ARCHIBALD OKPON TETTEH [2011] DLSC 638 cited.
Appellants also point out that, this was not a case where the Respondent at the trial
pleaded that he was entitled to the option of first renewal. Therefore, by holding that
the Lands Commission was bound to renew the lease for the Respondent, the Court of
Appeal was substituting a case for the Respondent and writing an agreement for the
parties. DAM V ADDO [1962]2 GLR 200; ACKUMEY V KUMAH [1989-90]2 GLR 283 cited.
Page 24 of 47
Next, Appellants attack the Court of Appeal’s position that the Lands Commission acted
contrary to article 296 of the Constitution in the manner it issued the fresh lease in
favour of the Appellants as against the Respondent. According to the Appellants, the
evidence shows that before the issuance of the fresh lease, there had been
correspondence between the offices of the Lands Commission in Kumasi and Accra.
There was a letter to show that the Respondent had requested for a refund of his fee
paid for the renewal of the lease whereas the fee paid by the Appellants remained with
the Commission. On account of that, the Lands Commission deemed it prudent to issue
a fresh lease to whichever party was available and interested since the Commission
could not allow people to occupy the property without paying rent. The law also would
not restrain future act over an interest in land that is yet to be created. ROYAL
INVESTMENT COMPANY LTD. V MADAM RUTH QUARCOPOME & ANOR (supra) cited.
The Lands Commission therefore did no wrong in issuing the fresh lease in favour of
the Appellants.
Counsel refers to the provision in article 296 of the Constitution on the exercise of
discretion and a passage attributed to Justice Frank further in the case of TROP V
DULLESS 356 US 86 (1958), 120 cited by Kpegah JSC in GHANA BAR ASSOCIATION V
ATTORNEY GENERAL [2003-2004] SCGLR 250 and contends thus:
“Respectfully My Lords, the Commission had wide discretion in determining the
rightful person to whom that lease ought to be engrossed in his/her favour.
Therefore, the Respondent not having led any evidence to prove that the Lands
Commission acted unfairly, and capriciously, there was no justifiable ground for
the Honourable Court of Appeal to interfere with the decision of the Lands
Commission.”
In any case Counsel argues, the decision as to whether or not the Lands Commission
had violated the provisions in article 296 of the Constitution was completely outside the
jurisdiction of the Court of Appeal. The Court of Appeal therefore exceeded its
jurisdiction when it proceeded to interpret the Constitution. The said decision therefore
ought to be set aside by this Court.
Page 25 of 47
Summary of Respondent’s arguments
In response to the Appellants’ argument that at the commencement of the instant suit,
the lease had expired and therefore the Plaintiff had no subsisting interest for which a
renewal could be granted by the Lands Commission, the Respondent contends that the
Plaintiff still had interest both in law and in equity even after the expiration of the
headlease. Respondent points out evidence on record that showed that the Respondent
continued paying ground rent/rate to the Lands Commission after the lease had expired.
It is contended that the Respondent’s interest ripened into a tenancy at sufferance or
a tenancy at will which was an interest recognized in both law and equity.
Apart from that, long before the lease expired, the Respondent in 1960 applied to the
Lands Commission to surrender the headlease for a fresh lease to be granted for a
longer period. In the Appellants’ case, it was not until 1988 that their right to apply for
the fresh lease accrued. Of the two equities, the Respondent’s which was first in time
was to prevail. The Respondent urges the application of the maxim qui prior est
tempore, prior est jure which was applied in the case of GYIMAH & BROWN V NTIRI
[2005-2006] SCGLR 247.
Additionally, Respondent refers to the evidence that even after expiration of the lease
there were buildings situate on the property belonging to the Respondent of which he
remained in effective possession. The Respondent’s possession of the building was a
fact admitted by the Appellants’ own witness.
Then again, according to the Respondent, there was evidence that the Lands
Commission’s office in Kumasi had already engrossed a lease in favour of the
Respondent which was later withdrawn without any justifiable reason. The lack of
justifiable reason is explained thus; the Respondent applied for a renewal of the lease.
In response, the Lands Commission in Kumasi engrossed a lease in the Respondent’s
Page 26 of 47
favour which was forwarded to Accra for execution by the Commission. The office in
Accra wrote to seek explanation as to how ‘Akyaakrom’ Stool became the lessee of the
property as its records did not indicate so. Instead of clarifying the matter with their
own records or inviting the Respondent to clarify the confusion about the name, the
Kumasi office simply wrote back to say that a re-check of their records showed that
Aisha Nana was the rightful person to apply for the renewal of the lease. Based on this,
the lease that had been engrossed in the Respondent’s name was withdrawn.
It is argued for the above reasons that not only did the Respondent continue to have
interest in the property even after the expiration of the headlease but was better entitled
to have the lease renewed in his favour and the lower courts were right in so holding.
Responding to the contention that the Respondent’s lease had expired and therefore
there was nothing to renew, Counsel for the Respondent refers to same case of ROYAL
INVESTMENT COMPANY LTD V MADAM QUARCOPOME (supra) to argue that there are
instances where equity would intervene to grant a tenant whose tenancy had no
renewal clause the relief to renew. Counsel submits thus:
“So upon the expiration of the 1927 lease executed in favour of the Respondent
Akyiawkrom Stool, the Respondent as the Lessee of the expired lease had the
right to apply for a new lease or a renewal of the expired lease and under the
doctrine of equity, was better entitled to the renewal of the lease.”
The Respondent also denied the Appellants’ position that the Respondent had asked for
a refund of fee paid for the renewal of the lease. According to the Respondent, the
issue of the Respondent asking for a refund did not feature anywhere in the pleadings
and was never attested to by any witness. The letter itself talked about refund of ground
rent not renewal and in any case the alleged author of the said letter was not authorized
by the Respondent neither did the Land Commission respond to it.
Still in support of the Court of Appeal’s holding that the Respondent was better entitled
to a renewal of the lease, the Respondent points out the factors the Court premised its
decision on. These factors were not different from those that were set out to show the
Page 27 of 47
Respondent’s interest in the property even after the expiration of the headlease. They
were; the fact that the Respondent was the original lessee and the one who had a
building on the land backed by a building permit which building he was still in possession
of; the fact that as far back as 1960, the Respondent had written to surrender the
residue of the headlease for a longer term; the fact that when the Respondent got wind
of the intended transfer to Aisha Nana, he caused his lawyers, Mmieh & Co to write,
copied to the Lands Commission to essentially protest; and the fact that a lease was
first engrossed in the Respondent’s favour which was withdrawn without justifiable
cause.
A greater part of the Respondent’s arguments was devoted to respond to the Appellant’s
attack on the Court of Appeal’s holding that the Lands Commission acted contrary to
article 296 of the Constitution in the manner it issued the fresh lease in favour of the
Appellants as against the Respondent.
It was here pointed out that the Lands Commission as a body provided for under article
258 of the 1992 Constitution and set up under the Lands Commission Act (Act 767) had
been mandated to manage lands in the country on behalf of the President. The subject
matter of the suit falls within the mandate. In the exercise of the mandate the Lands
Commission exercises discretion which must be guided by the provisions in articles 296
and 23 of the Constitution. ABU RAMADAN & NIMAKO (NO.2) V ELECTORAL
COMMISSION & ATTORNEY GENERAL (NO.2) [2015-2016]1 SCGLR 39; NUNOFIO V
FARMERS SERVICES COMPANY LIMITED [2007-2008] SCGLR 926; TEMA
DEVELOPMENT CORPORATION (TDC) & MUSAH V ATTA BAFFOUR [2005-2006] SCGLR
121 cited.
The Respondent’s contention is that the Lands Commission in this case failed to exercise
the discretion properly or abused its discretion in the manner it issued the fresh lease
favour of the Appellants. We try to capture the alleged abuse from the Respondent’s
argument as follows.
Page 28 of 47
The Lands Commission was faced with two applications whether to renew in favour of
the Respondent or the Appellants. The application of the Respondent who had been the
sitting lessee was first in time. The Respondent had seventeen years before the lease
expired presented an application to surrender the lease for a longer term. When the
lease expired, the Lands Commission actually engrossed a fresh lease in favour of the
Respondent. The lease was presented to the Lands Commissions’ office in Accra for
execution. The office in Accra wrote to seek explanation as to how ‘Akyaakrom’ Stool
became the lessee of the property as its records did not indicate so. Instead of clarifying
the matter with their own records or inviting the Respondent to clarify the confusion
about the name, the Kumasi office simply wrote back to say that a re-check of their
records showed that Aisha Nana was the rightful person to apply for the renewal of the
lease. Thus, the only reason why the Lands Commission did not complete the process
started in favour of the Respondent was the confusion in the name of the Respondent.
According to the Respondent, it behoved on the Lands Commission to have invited the
Respondent to explain away the confusion in the names Akyinakrom and Akyiawkrom
and/or its relationship with Nana Nsebetuo.
The Respondent submits that by not seeking the clarification from the Respondent
before deciding to drop the engrossed lease, the Lands Commission breached one
cardinal principle of fairness. REPUBLIC V COURT OF APPEAL & TOMFORD; EX PARTE
GHANA CHARTERED INSTITUTE OF BANKERS [2011]2 SCGLR 941 cited.
Further, the Respondent submits that the refusal to complete the execution of the lease
engrossed in his favour for the reason that he was not known to be the owner of the
property the subject of the application was not only a wrongful exercise of discretion
but also capricious, arbitrary and abuse of natural justice. The Court of Appeal was
therefore right when it held that the Lands Commission wrongly exercised its discretion.
The cases of IMBEAH V JUDICIAL SECRETARY [2013-2015]1 GLR 253; RANSFORD
FRANCE V ELECTORAL COMMISSION & ATTORNEY GENERAL (ARKANN-ACKUMEY
(APPLICANT) [2012]SCGLR 697; SHARP V WAKEFIRELD (1891) AC 173; BREMEN V
AMALGAMATED ENGINEERING UNION (1971) QB 171; ROBERTS V HOPWOOD (1925)
Page 29 of 47
AC 578 were cited for the submission that the concept of unfettered discretion does not
exist and that discretionary power conferred on a public body was upon trust that it will
be validly and properly exercised as envisioned by the legislature.
It is further argued that contrary to the Appellants position, the Court of Appeal was
not substituting a case or an agreement in favour of the Respondent. Rather the Court
was exercising its power to intervene where in its opinion, the Lands Commission
wrongly exercised its discretion. The Court of Appeal therefore committed no wrong
when it failed to hold that there was no mandatory obligation to renew the lease for
the Respondent, neither did the decision of the Court amount to imposing a contract
on the Lands Commission. REPUBLIC V MINISTER FOR INTERIOR, EX PARTE BOMBELLI
(1984-86)1 GLR 204 cited.
Determination
To begin with, it is common cause that the 50-year headlease granted to the
Respondent in 1927 expired in 1977. The lease thus expired by effluxion of time. It is
again common cause that the headlease had no renewal clause.
The general rule at common law is that at the expiration of a lease, the relationship
between the lessor and the lessee comes to an end. The lease is automatically
determined by effluxion of time and the previous relationship between the parties
dissolves. In effect, by the dictates of the general rules of common law, the relationship
between the Respondent and the headlessor which position had been assumed by the
Lands Commission by law, came to an end when the headlease expired in 1977. The
point was articulated by Amegatcher JSC in ROYAL INVESTMENT COMPANY V MADAM
RUTH QUARCOPOME & ANOR [2021]174 GMJ 285 at 328 as follows:
“On the other hand, when a lease agreement has expired, the parties are longer
bound by its terms unless there are clauses which survive the expiration of the
agreement. The parties are relieved from their rights and obligations to effect
Page 30 of 47
and receive future performance under the agreement. The expiration of a lease
results in the dissolution of the relationship that existed between the parties to
a lease in respect of the leased property. In the absence of an express renewal
duly exercised in accordance with the terms of the lease agreement, a property
the subject matter of the lease will revert back to the lessor and the lessor may
resume exercising his proprietary rights.”
The fact that the headlease with no renewal clause expired by effluxion of time is the
hallmark of the Appellant’s case. To them, the Lands Commission became entitled to
decide without any restriction, whichever party to grant the fresh lease to. The
Respondent however thinks that the facts and circumstances of the case posed a fetter
on the Lands Commission’s free hands. The learned trial judge and the Justices of the
Court of Appeal bought into the Respondent’s position. In the Court of Appeal, the
Justices delivered themselves:
“We are of the view that the Lands Commission did not exercise its discretion
properly as required under Article 296 of the 1992 Constitution. It was patently
wrong to have granted a lease to the Appellants as against the Respondents
solely on the basis of misdescription of the Stool name when it was clear that
the Commission itself had documents in its custody in which the stool had
variously been described as Akyiawkrom or Akyinakrom. The least the
Commission could have done was to invite the Respondent to clarify the issue of
the dual names on the documents available to the Lands Commission. Again, it
is also clear that the Respondents were in possession of a part of the property
as against the Appellants and thus was better entitled to a lease renewal.”(page
360 Vol.2 R0A
Now, what evidence is there to support the above view of the learned Justices?
Long before the headlease expired, the Respondent wrote to the Lands Commission in
a letter dated 9th May 19th May 1960 applying to surrender the headlease for a longer
term. The relevant part of the letter (at Page 137 ROA) stated:
Page 31 of 47
“It is the present intention of myself as Akyinakromhene and Elders and
Councillors of Akyinakrom Stool to surrender to the Government the residue now
unexpired of the respective terms of years granted by the headleases and for
the Government to grant to the Stool new headleases for longer terms of years.
In the circumstances, I have the honour to apply to the Government on behalf
of the Akyinakrom Stool for the grant to the Stool of new headleases in respect
of the above-mentioned plots [Plots 106 and 107] for longer terms of years.
Upon hearing from you regarding the surrender of the present headleases, I shall
be pleased to hand over the same to the Government. I would add that the
above-mentioned plots are substantially developed. Hoping that this application
would be favourably considered and I shall be pleased to hear from you at an
early date.”
It does not appear that the Lands Commission reacted to this application until the
headlease expired. After the headlease had expired, the Lands Commission engrossed
a lease in favour of the Respondent for 15 years to start from 1st March 1988 and end
on 28th February 2003 [223—225]. This lease was executed by Nana Owusu Achiaw II
for the ‘Akyawkrom’ Stool. Thereafter, it was forwarded to Accra to be executed by the
Chairman of the Lands Commission. It was at this stage that the Lands Commission
Secretariat Accra, wrote to its Kumasi Office in a letter dated 23rd May 1988 [page 191
ROA] in the following words:
“Please refer to your memo dated 24th February 1988 on the above-named
subject. Could you please explain how Akyaakrom Stool became the lessee since
the records here do not reveal the Stool as a lessee of this O.T.B. land…”
There is a handwritten minute on the above letter by the officer of the Kumasi office
who acted on it which is to the effect that the lease already engrossed in favour of the
Respondent be withdrawn since later evidence has shown that the Stool was not the
original lessee. The same minute directs that a fresh lease be engrossed in favour of
the other ‘claimants’ [Aisha Nana]. Clearly, it was to put the said minute into effect that
Page 32 of 47
the letter dated 24th April 1989 from the Kumasi office to the Executive Secretary was
written which stated:
“Please refer to your letters Nos. SCR/LCS.82 AND SCR/LCS.82/120 dated 23rd
May, 1988 and 27th June 1988 respectively on the above subject. A re-check of
our records has shown that Aisha Nana and not the Akyaakrom Stool is the
rightful person to apply for the renewal of the lease of the above-named
property. A new lease is therefore being prepared in favour pf Aisha Nana. In
the circumstances, I would like you to return unexecuted the lease made in
favour of Akyaakrom Stool which was sent to you per my memo dated 24th
February, 1988.” [page 190].
Acting upon the above letter, the Respondent’s lease in Accra was returned unexecuted
by the Commission by a letter dated 10th May 1989 which indicated:
“I return herewith, in quadruplicate, the unexecuted lease document in favour
of Akyaakrom Stool. You may wish to take the appropriate further action in
respect of the property.” [page 189 ROA]
Subsequently, the appropriate further action that was taken is contained in a letter the
Kumasi office forwarded to Accra which stated:
“I forwarded herewith for execution by the Chairperson of the Lands Commission
a lease duly prepared in quadruplicate in favour of Vakil Abdula Esaka and
Abubakr Esaka. [The Appellants]. This is one of the O.T.B. cases which the Lands
Commission has already given approval.” [page 188 ROA]. This lease is in
evidence as Exhibit 3 with a corresponding land certificate as Exhibit 4. [page
244—250 ROA]
From the Commission’s letter of 23rd May 1988, what the Accra office requested for
was an explanation as to why the fresh lease was engrossed in the name of Akyaakrom
Stool since from its records, the Stool was not the lessee. The letter did not mention
who the lessee was from the office’s records. One could however surmise one of two
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scenarios; first, Nana Nsebetuo as the lessee since the lease was originally granted in
his name which was changed into the name of the Stool consequent upon the judgment
of the Circuit Court; and second the name Akyinakrom or Akyaakrom as the lessee since
those names have variously appeared in correspondence about the property resultantly
confusing with the true Akyawkrom.
There is evidence to support the fact that in either scenario, the information to clarify
the point in response to the Accra letter was obtainable from the records of the
Commission in its Kumasi office or from the Respondent. In neither scenarios would the
name Aisha Nana appear. For certain, she had never been a lessor of the property. To
our minds, to bring Aisha Nana within the compass of the correspondence was to do a
strange bidding. We shall come back to this point.
Is there evidence of the Respondent’s possession of the property?
The evidence of the Respondent was that pursuant to the original agreement between
Nana Nsebetuo and Naja David and 1st Defendant, a four-bedroom facility with kitchen
and toilet [henceforth called “the residential portion”] was constructed which was
occupied by the occupant and other subjects of the stool. According to the Respondent,
the occupant and subjects of the Stool altogether, had remained in possession for over
60 years.
PW1 was Sarah Mooney who said she lived in part of the residential portion with her
parents as tenants to the Stool. According to her evidence, she was born into the
property and was still living there at the time she was giving evidence (that was 30th
November 2004). Her evidence-in-chief in part was as follows:
“Q. You have just told the Court that you live in H/No. O.T.B. 106 Adum, Kumasi. Is
that correct?
A. It is correct.
Q. And you said that house belongs to the Akyiawkrom Stool?
A. Yes
Page 34 of 47
Q. Can you briefly tell the Court how you came to live in that house?
A. It was my father and mother who came to live in that house.
Q. Who was their Landlord?
A. Nana Akwasi Adom who was then the chief was their Landlord.
Q. Of which Stool?
A. Akyiawkrom Stool. We were all born in that house.
Q. Where was Nana Akwasi Adom living?
A. We lived in O.T.B. 1106 with Nana Adom
Q. Is he still living there?
A. He was destooled. So he left the house.
Q. Did he continue living there?
A. He is no longer living in that house.
Q. At the time that he was living in that house, do you know to whom rents were being
paid by your parents?
A. We paid to the chief.
Q. Can you tell us the nature of the building you are occupying?
A. Two chambers, kitchen, toilet and a bathroom.
Q. Will you agree if anybody tells you that you are living in an unauthorized structures?
A. I will not agree
Q. You told the Court that you are still living in this house. Now who is your Landlord?
A. Nana Tutu Ampem is my Landlord.”
Page 35 of 47
The Appellants’ main attack on the Respondent’s possession is that the residential
portion on the land contained unauthorized structures. Exhibits 5, 6, 7, 8, 9, 10 and 11
mostly correspondence between the Appellants’ lawyer and the Kumasi Metropolitan
Authority were tendered to support the position that the bedrooms were liable to be
demolished. [pages 251—258 ROA].
By the way, if both the stores and the residential portion were no doubt constructed by
Naja Davis and the 1st Defendant under one agreement, then it is doubtful the
residential portion would be unauthorized whilst the stores would not. In any event, the
Appellants’ account that the residential portion was unauthorized was later to be
repudiated by their own witness (DW2) who conceded that the structure had been
constructed upon a permit issued to the Akyawkrom Stool. DW2 under cross-
examination said:
“Q. This building permit was in respect of redevelopment of the plot?
A.That is correct.
Q. And you find out that other buildings existed prior to this application?
A. The application was not in respect of redevelopment but extension to an existing
building.
Q. Do have building permit in respect of the existing building?
A. Yes
Q. Who put in that application?
A. The application was put in by the Stool of Achiakrom Kumasi.”
On our evaluation of the entire evidence on record, it could not be true that the
residential portion which the Respondent and the subjects occupied under the original
agreement was an unauthorized structure. It could not be unauthorized when it had
been constructed upon a permit issued by the appropriate statutory authority. It
Page 36 of 47
appears it was when the Appellants sought to redevelop the land after the purported
grant to Aisha Nana that attempts were made to demolish that portion.
It will be observed that after the headlease had expired in 1977, it was not until 1988
that the fresh lease was engrossed in favour of the Respondent. There is nothing to
suggest that in the intervening period the Respondent lost possession of the residential
portion the expiration of the headlease notwithstanding. PW1’s evidence supports
possession which had been visible and continuous. The learned Justices of the Court of
Appeal were right on their conclusion that the Respondent was in possession of the
property at the time the Lands Commission decided to grant the lease to the Appellants
instead of the Respondent. Apparently, it was because the Respondent was in
possession that the Lands Commission had earlier decided to engross a lease in his
favour after the headlease had expired. Besides, the Respondent’ account that during
that period rent was being paid is convincing. The Lands Commission would not look
on for the Respondent to default on rent payment for a period of 11 years (1977—
1988) and still engross a lease in his favour.
The evidence has shown that when the lease was actually engrossed in the
Respondent’s favour, the Respondent executed his part, it was forwarded to the
Commission’s office to be executed. Subsequent events as already narrated led to its
withdrawal following which a fresh lease was granted to the Appellants.
Now, if the Respondent remained in possession of the property even after the headlease
had expired and the Lands Commission had actually engrossed a lease in his favour
only to be withdrawn for reasons the learned Justices of the Court of Appeal did not
find justifiable, how then could they err on their decision that the Lands Commission
was wrong when it granted a lease to the Appellants as against the Respondents?
My Lords, perusing the rival statements of case of the parties, much has been argued
about the exercise of discretion by the Lands Commission when it came to decide on
who, between disputants, was entitled to be granted the lease. Doing so however, a
Page 37 of 47
key point seems to have eluded both sides; the point about the legal status of the
engrossed lease to the Respondent.
The legal status of the partly executed lease of the Respondent.
A lease is a transfer of an interest in land and hence, governed by the statute on
conveyancing. At the time the Lands Commission engrossed the lease to the
Respondent the now repealed Conveyancing Act, 1975 (NRDC 175) was in force.
Sections 1 and 2 and Section 3 sub-section 2 provided as follows:
“Section 1—Mode of Transfer.
(1) A transfer of an interest in land shall be by writing signed by the person making
the transfer or by his agent duly authorized in writing, unless relieved against
the need for such writing by the provisions of section 3.
(2) A transfer of an interest in land made in a manner other than as provided in this
Part shall confer no interest on the transferee.
Section 2—Contracts for the for Transfer
No contracts for the transfer of an interest in land shall be enforceable unless—
(a) It is evidenced in writing signed by the person against whom the contract is to
be proved or by a person who was authorized to sign on behalf of such person;
or
(b) It is relieved against the need for such a writing by the provisions of section 3.
Section 3—Transactions Permitted Without Writing.
(2)Sections 1 and 2 shall be subject to the rules of equity including the rules relating to
unconscionability, fraud, duress and part-performance.”
A cursory look at the engrossed lease shows that it contained all the terms of otherwise
a legal lease. The parties are clearly stated. They are the Government of Ghana acting
by the Chairman of Lands Commission as Lessor and Akyawkrom Stool acting by Nana
Owusu Akyaw II as the Lessee. The lease was for a term of fifteen years starting from
Page 38 of 47
1st March 1988 and ending on 28th February 2003. The agreed rent was 87,284.00 cedis
per annum payable in advance on 1st April of every year of which the payment for the
first year was made before execution. The Lessee duly executed his part. The only thing
left undone for the lease to satisfy the form prescribed by Section 1 of the Act was the
execution by the lessor. Discernibly, the terms contained in the document particularly
the agreed rent and duration could not have been conjured. It turns sound reasoning
to infer that they were negotiated between the two sides. This a matter of common
sense and pragmatism. The document was therefore the product of the parties’ accord.
More significantly to recall, at the material time, the lessee was in possession of the
property.
In the light of the above, we think this was clearly a specifically enforceable agreement
between the parties to the document. And given that the only thing absent from the
document to satisfy the form of a valid legal lease was the lessor’s signature, the lessor
being the party making the transfer of the interest in terms Section 1(1)), the document
created an equitable lease in favour of the Respondent.
An equitable lease, as the name implies, is a lease valid and enforceable in equity
though not conformable to statutory or common law prescription as to form. Our law
still recognizes such lease. The learned A.K.P Kludze in his book already referred to,
explains equitable lease with admirable clearness at page 99 as follows:
“The equitable lease arises when there is otherwise a valid lease because the
parties have negotiated and agreed on a lease but there is lack of due form.
Because the lease lacks due form in not being created by writing signed by the
lessor or his agent as required by section of the Conveyancing Decree, formerly
section 1 of the Statutes of Frauds, it is not enforceable in law if it is for a term
exceeding three years, or being for three years or less, it does not take effect in
possession. Although such a lease, in the words of section 1 of the Conveyancing
Decree “shall confer no interest”, a court of equity may treat it and, therefore
enforce it as an agreement for a lease under some circumstances. The document
may qualify as a contract or agreement for a lease because it is in writing within
Page 39 of 47
the meaning of section 2 of the Conveyancing Decree. When such a lease is
invalid at law but is enforceable in equity only, because of the doctrine of part
performance or some other rule of equity, it is known as an equitable lease.”
The well-known case of WALSH V LONSDALE (1882)21 CH.D 9 involved a contract for
a seven-year lease to the defendant which though was in writing, did not comply with
the legal requirement that it be made by a deed. Nonetheless, the Plaintiff was in
possession. He however defaulted on the payment of the rent advance as agreed and
the defendant distressed his goods which procedure was available at law. The Plaintiff
sued in trespass to his goods, arguing that there was no valid lease at law hence the
legal remedy of distress was available to the Defendant. The Plaintiff’s action failed for
the reason that in the eyes of equity, a tenant in possession by a specifically enforceable
contract for a lease was in the same position as if a lease had been executed.
Accordingly, as far as equity was concerned, the plaintiff was already a lessee for seven
years and subject to all the terms of the agreement and all rights and remedies
available. See also COATSWORTH V JOHNSON (1886)55 L.J. Q.B. 220; MANCHESTER
BREWERY CO. V COOMBS (1901)2 CH. 608; CRUMP V TEMPLE (1890)1 T.L.R. 120 and
TOTTENHAM HOTSPUR FOOTBALL CLUB & ATHLETIC CO., V PRINCEGROVE
PUBLISHERS LTD. (1974) ALL E.R. 17.
Undoubtedly, the document in the instant case did not start as an agreement for a
lease. It is a partly executed lease document. However, the same principle applies. To
the extent that on the facts, the parties had a specifically enforceable agreement, and
the document is not a legal lease by reason only of the fact that the lessor did not sign
to make it conformable to the statutory requirement in Section 1 of the Act, it is
considered as an agreement for a lease which gives rise to an equitable interest.
Out of the above, we believe we state the law correctly that whenever, as in the instant
case, a partly executed document to evidence a transfer of an interest in land under a
specifically enforceable agreement is not a legal lease by reason only of the absence of
the signature of the lessor or that of his agent, it may be considered an agreement for
lease capable of creating an equitable interest in the land. On the authorities on the
Page 40 of 47
subject considered, the rules of equity are wide enough to cover such a situation. It
must be stated that the equitable interest thereby created is recognized as an interest
in the land itself. Consequently, the Respondent held an equitable interest in the land
which a court of equity would protect. Indeed, the Respondent deserved this protection
for the added reason that the Appellants at the time they took their lease from the
Lands Commission had notice of the Respondent’s possession of the land. They were
therefore not bona fide purchasers without notice. We have also decided earlier in this
delivery that the Appellants predecessors were tenants to the Respondent and not
assignees as they had contended in the courts below. This further weakens the
appellants’ entitlement to the property through the purported lease.
Before going on we pause to address one point. About the interest the Respondent had
after the expiration of the headlease, Learned Counsel for the Respondent had argued
that Respondent’s interest was “ripen into a tenancy at sufferance or a tenancy at will
which also an interest recognized in both law and equity”.
With due respect to Counsel, that argument itself is ambivalent. In any event, it appears
that at common law, neither a tenancy at will nor at sufferance is an interest or estate
in land. It is appropriately described as a personal relation between a landlord and his
tenant. See WHEELER V MERCER [1956]3 ALL ER 631at 634.
Back to our evaluation, we think we can conclude that the Appellants’ accusation of the
Court of Appeal for not holding that the Respondent had no interest whatsoever in the
disputed property immediately before and at the time of the renewal of the lease in
favour of their Appellants was misconceived. Whilst the position holds true on the
authority of such cases as ROYAL INVESTMENT COMPANY LTD V MADAM RUTH
QUARCOPOME & ANOR (supra) and others cited by the Appellants, that the expiration
of a lease results in the dissolution of the relationship between the parties to the lease,
the fact that in this case, an equitable interest was subsequently created in favour of
the Respondents takes the case out of that principle. There was also no error on the
part of the Court of Appeal for not saying that there was no mandatory duty or
Page 41 of 47
obligation to renew the lease in favour of the Respondents as the Appellants demand
of this court to hold.
Further, by our same conclusion, the fact that the headlease had not renewal clause
becomes inconsequential. For, by the conduct of the Lands Commission and the
Respondent, manifested in the partly engrossed lease, there was a clear and
demonstrable intention and steps further, to renew the expired lease. Thus, when the
Court of Appeal held that the Respondent was better entitled to a renewal of the lease,
it was understating the true position.
This is also not a case to properly apply the holding in BEN MIREKU V ARCHIBALD
OKPON TETTEH (supra) as the Appellants sought to do, to say that, the Court of Appeal
was implying or imposing a contract on the Lands Commission and the Respondent.
There was in existence a specifically enforceable contract the terms of which had been
agreed between the parties.
We now address the issue about the propriety of the exercise of discretion by the Lands
Commission in granting the lease to the Appellants. The Appellants argue that the Court
of Appeal erred in holding that the Lands Commission wrongly exercised its discretion
under article 296 in granting the lease to the Appellants instead of the Respondent.
We begin by getting rid of one point Counsel for the Appellants argue which is to the
effect that by the said holding, the Court of Appeal sought to interpret article 296 of
the Constitution, a power it had no jurisdiction to exercise in terms of article 2(1) of the
Constitution. BANOUSIN V THE REPUBLIC [2015-2016]2 SCGLR 1232 cited.
In our judgment, this contention is a mere ‘Aunt Sally’. No question of interpretation
arose on the point and the Court of Appeal embarked upon no such venture. Before the
Learned Justices of the Court, the Respondent had argued the ground that, faced with
the issue of whether the Akyawkrom Stool was the lessor of the land, the Lands
Commission had a duty to inquire from its record or seek clarification with the
Respondent. Not doing so and by proceeding to withdraw the Respondent’s engrossed
lease in favour of a fresh lease to the Appellants, the Lands Commission which is a
Page 42 of 47
statutory body vested with the discretionary authority failed to properly exercise the
discretion. This was the argument that swayed the Court of Appeal to hold thus:
“We find the arguments of the Respondent on this ground more persuasive and
are inclined to agree with same. We are of the view that the Lands Commission
did not exercise its discretion properly as required under Article 296 of the 1992
Constitution.”
Let it be stated that in this country, every court has jurisdiction to apply the provisions
of the Constitution in deserving situations save where a genuine issue of interpretation
arises. If any authorities for this are required, the chain will include such cases as
REPUBLIC V ACCRA SPECIAL CIRCUIT COURT; EX PARTE AKOSAH (1978) GLR 212;
REPUBLIC V MAIKANKAN (1971)2 GLR 473; ADUMOA II V ADU-TWUM [2000] SCGLR
165 and XL INSURANCE SWITZERLAND CO. V GEMINI MARITIME SERVICES & ANOR
[2012]1 SCGLR 658.
There is obviously a substantial measure of unanimity between the parties regarding
the position that the Lands Commission in terms of article 296 of the Constitution was
vested with the discretion of deciding who to grant the lease to. No issue turns on the
point and it serves no useful purposes referring to the authorities the Respondent in
particular has treated us to. Besides article 296, article 23 imposes a general duty on
administrative bodies and administrative officials a duty to act fairly and reasonably in
the discharge of their duties conferred by law. The Appellants have however contended
as follows:
“Respectfully My Lords, the Commission has wide discretion in determining the
rightful person to whom that lease ought to be engrossed in his/her favour.
Therefore, the Respondent not having led any evidence to prove that the Lands
Commission acted unfairly and capriciously there was no justifiable ground for
the Honourable Court of Appeal to interfere with the decision of the Lands
Commission.”
Page 43 of 47
Contrary to the above, we have found sufficient evidence to support the Court of
Appeal’s stance on the matter. On pain of sounding repetitive, we have earlier on
determined that from the Commission’s letter of 23rd May 1988, what the Accra office
requested for was an explanation as to why the fresh lease was engrossed in the name
of Akyaakrom Stool since from its records, the Stool was not the lessee. Whilst the letter
failed to mention who the lessee was from the office’s records one could surmise it
could be either Nana Nsebetuo since the lease was originally granted in his name or the
Akyinakrom or Akyaakrom since those names have variously appeared in
correspondence about the property. In either case, the information to clarify could be
sought from the records of the Commission in its Kumasi office or from the Respondent.
Nothing in the evidence reasonably brings Aisha Nana or the Appellants within the
contemplation of the inquiry.
To rationalize the decision of the Lands Commission to grant the lease to the Appellants
as against the Respondent, the Appellants rely on a letter supposed to have been
written on behalf of the Respondent to the Lands Commission to reclaim a refund of his
fee paid for the renewal of the lease [page 186 ROA]. Addressing the point about this
letter, Counsel for Respondent submitted:
“Your Lordships, the issue of the Respondent asking for a refund of money paid
for the renewal of the lease did not feature anywhere in the pleadings. It also
did not feature when the parties and their witnesses were testifying. The only
in-cling [sic] we get from the record where mention was made of a “refund of
money” is a letter which appears at pages 186 and 196 of the ROA written by
one Kwaku Oduro who claimed to be the attorney for his father, Nana Owusu
Achiaw. There is no power of attorney attached to the letter. More importantly
the heading of the letter reads; “APPLICATION FOR REFUND OF GROUND
RENT.” The application for the refund related to payment of ground rent and not
money paid for the renewal of the lease. Even with the ground rent, there is no
record of the Land Commission replying to the letter or refunding same.”
Page 44 of 47
We believe this submission adequately answers the point made by the Appellants. The
letter is incapable of advancing the Appellants’ cause. We observe for ourselves that
the letter which is dated 21st August 1989 was written after the Lands Commission had
already decided to withdraw the lease engrossed for the Respondent and grant a new
one to the Appellants. A latecomer as the letter was, it could not have afforded a ground
to rationalize the Commission’s conduct.
From what we see, the Commission by the stroke of the pen and without reck, withdrew
the Respondent’s lease and proceeded to make a grant to the Appellants. This approach
the Court of Appeal reasoned was not in accord with a good exercise of discretion. It
was in the case of SHARP V WAKEFIELD (1891) A.C. 173 that Lord Halsbury was
reported to have said:
“discretion means when it is said that something is to be done within the
discretion of the authorities that that something is to be done according to the
rules of reason and justice, not according to private opinion; Rooke’s case;
according to law and not humour. It is to be, not arbitrary, vague, and fanciful,
but legal and regular. And it must be exercised within the limit, to which honest
man competent to the discharge of his office ought to confine himself.”(See
quotation in H.W.R Wade & C.F. FORSYTH, Administrative Law, 11th ed., Oxford,
page 291.)
On our examination of the facts established and the applicable law, we agree with the
reasoning of the learned Justices of the Court of Appeal and wholly endorse their
conclusion. What is even worse, at the time the lease was granted to the Appellants,
the instant suit, to the knowledge of the Lands Commission was pending in the trial
court. The Court of Appeal could not have found a better ground to discountenance the
decision of the Commission. See CHELLARAM & SONS (GH) LTD. V HALABI (1963)1GLR
214.
In conclusion, we find no merit in the appeal. All the grounds of appeal fail. Earlier in
this judgment, we decided that the 1988 partly executed lease made in favour of the
Page 45 of 47
Respondent is enforceable in law. By reason of this, whilst we affirm the decision of the
Court of Appeal, we think the parties to the said lease, that is, the Lands Commission
and the Respondent must go by the terms thereof subject to such modifications that
may have become necessary due to the period of the pendency of this litigation. For
the avoidance of doubt, we order the Lands Commission to cancel the lease granted to
the Appellants dated 20th February 2001 together with the Lands certificate issued
thereon dated 2nd July 2004. In substitution thereof, we order the Lands Commission
to issue a fresh lease in favor of the Respondent on the basis of the Respondent’s 1988
partly executed lease. Subject to this variation, we uphold the decision of the Court of
Appeal and dismiss the appeal in its entirety.
(SGD) R. ADJEI-FRIMPONG
(JUSTICE OF THE SUPREME COURT)
(SGD) G. PWAMANG
(JUSTICE OF THE SUPREME COURT)
(SGD) I.O. TANKO AMADU
(JUSTICE OF THE SUPREME COURT)
(SGD) E. YONNY KULENDI
(JUSTICE OF THE SUPREME COURT)
Page 46 of 47
(SGD) E. Y. GAEWU
(JUSTICE OF THE SUPREME COURT)
COUNSEL
MUJEEB RAHMAN AHMED ESQ. FOR THE 3RD & 4TH DEFENDANTS/
APPELLANTS/APPELLANTS.
K. A. ASANTE-KROBEA ESQ. FOR THE PLAINTIFF/RESPONDENT/
RESPONDENT WITH HIM, KENNEDY KWARTENG.
.
Page 47 of 47
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