The Fast Track High Court (Commercial Division) on Thursday threw out a motion for stay of execution filed by Intercity STC Coaches Limited in respect of a matter between the company and Svani Limited, a firm that deals in vehicles and accessories.
The court in its judgment on May 12 ordered Intercity STC Coaches to pay 607,470 pounds or its equivalent, being money it owed Svani Limited, for failing to pay for the supply and use of 13 luxurious buses.
It held that there was overwhelming evidence that STC acted in bad faith and asked STC to pay interest on the 607,740 pounds from December 2007 to the date of final payment.
Meanwhile estimates as of today put the interest at 612,000 pounds. The court further awarded cost of 60,000 pounds against STC.
STC used the Eicher buses supplied from India for more than one year to generate revenue only to reject them after the company had been sued. The Managing Director of STC, Mr Kwame Adjei-Sefa, explained that the STC Board of Directors did not approve of the purchase of the buses.
At Thursday's sitting Ms Justice Margaret Insaidoo, the trial judge, refused the application and awarded cost of GH¢500 against Intercity STC Coaches Limited adding that the amount should be paid before they pursued an appeal.
STC Coaches Limited in a stay of execution contended they were aggrieved at the judgement of the court and therefore filed the appeal to that effect.
According to STC the appeal had chances of succeeding on appeal.
STC contended that the judgement of the court was full of flaws and should be stayed pending the hearing of the appeal.
According to STC, the court erred when it held that the transaction between the parties was a sale whereas there was copious evidence on record to show that it was on an alliance basis.
However, Svani limited opposed the application saying it was without merit and that its sole object was to delay their enjoyment of the fruits of the court's judgment.
Svani Limited said STC failed to prove the existence of an alliance agreement between.