Accra High Court Grants Warrant for Police Assistance in Dispute Over Oxford Street Hotel

Key Takeaways

• Accra High Court grants warrant for police assistance to Cola Holdings Limited and Receiver Nii Amanor Dodoo to take possession of No. 1 Oxford Street Hotel.
• Decision follows application by Cola Holdings after failure to obtain possession of the property peacefully.
• Court rules in favor of Cola Holdings citing security interest and Memorandum of No Objection to realise its security.

The Commercial Division of the High Court in Accra has issued a warrant for police assistance to UK-based Cola Holdings Limited and its appointed Receiver, Nii Amanor Dodoo, to take possession of the No. 1 Oxford Street Hotel in Osu, Accra. This development follows an application by the company after they were unable to obtain possession of the property without resistance.

The High Court's order, made by Justice Samuel Faraday Johnson on July 21, was granted in response to Cola Holdings' claims that they had registered their security interest over the property at the Collateral Registry and obtained a Memorandum of No Objection to realise their security.

Background & Context

The dispute surrounding the Oxford Street Hotel is part of an ongoing legal dispute arising from the enforcement of a security interest over the property. The matter follows earlier proceedings connected to the enforcement in Ghana of a judgment of the High Court of England and Wales involving Cola Holdings Limited.

The enforcement of the foreign judgment led to a public statement by Kensington Residential Partners 1 Limited's director, Nana Kwame Bediako (alias Cheddar), disputing liability under the judgment and instructing his lawyers to challenge its enforcement through the Ghanaian courts. Bediako had also appealed a High Court decision relating to the registration of the foreign judgment.

Key Findings

The court's ruling in favor of Cola Holdings cites the Borrowers and Lenders Act, 2020 (Act 1052), which grants the company the right to seek police assistance after failing to obtain possession of the property without resistance. The court also found that Kensington Residential Partners 1 Limited had not presented sufficient evidence to justify refusing the application.

The court's decision allows Cola Holdings and the Receiver to take possession of the property and realise their security interest in accordance with the law. The order relates solely to the application for police assistance and does not determine any other issues or claims that may arise between the parties.

Broader Implications

The enforcement of security interests in properties is a critical aspect of the Ghanaian legal system, particularly in the context of business transactions. The court's decision highlights the importance of registering security interests and obtaining the necessary approvals to realise them.

The dispute over the Oxford Street Hotel also underscores the need for clear communication and cooperation between parties involved in business transactions, particularly when it comes to the enforcement of security interests.

Looking Ahead

The outcome of this case may have implications for future disputes related to the enforcement of security interests in Ghana. It remains to be seen how the parties involved will proceed with the enforcement of the security interest over the Oxford Street Hotel.