THE Court of Appeal will on February 5, commence hearing an appeal application filed by Scancom Ghana Limited, operators of Areeba mobile phone service to challenge an Accra Commercial Court’s decision not to stay proceedings in a suit in which Areeba is a defendant.

The substantive suit was filed at the Commercial Court by Richmond Aggrey, a Ghanaian businessman and former Vice-Chairman of Areeba, who is claiming 20 per cent shares in Areeba, a leading telecommunication service provider in the country.

Two foreign companies, Investcom Consortium Holdings S.A. of Beirut, Lebanon and Graudview Management of Texas, United States, are also defendants in the suit.

The legal tussle commenced on last July 14, 2006, when the Commercial Court, presided over by Justice Henry Kwofie, granted Mr. Aggrey an ex-parte application to restrain Investcom, Areeba and Graudview from going ahead to conclude a merger agreement with MTN Company of South Africa.

Mr. Aggrey in his statement of claim, had argued that "continuing and/or concluding a merger with and/or acquisition of Investcom Consortium by MTN without taking into account and/or providing for the plaintiff’s 20 per cent shares in Scancom Ghana Limited will occasion the loss of his shareholding in the company by reason of the accrual of the rights of MTN Group as a third party."

Following the granting of the injunction, Areeba filed an application on July 24, 2006 seeking to strike out Mr. Aggrey’s action "in part or whole" on the grounds that he failed to adhere to procedures in filing the application.

The court on October 20, last year, however, ruled that the processes followed by Mr. Aggrey in instituting the suit were proper and therefore ordered Areeba to file its defence within 14 days.

Areeba then filed a notice of appeal to challenge the high court’s decision at the Court of Appeal and another motion on notice to stay proceedings pending the appeal.

The case then took another turn on November 20, when Graudview Management, a co-defendant objected to Areeba’s position to move the motion for stay of proceedings contending that Areeba’s action was "masked to waste the court’s time".

The Commercial Court after hearing the application for stay of proceedings dismissed it and awarded ¢10 million cost against Areeba.

The substantive case has been fixed for February 7, pending the court of Appeal’s decision.

Times