Databank Epack Investment Fund Limited [Databank] is a Ghanaian company. It is an equity-based mutual fund that aims at yielding significant returns on investors’ capital over the long term through investments in listed pan-African equities with high growth potential. It entered into a financing agreement [the agreement] with Mega Africa Capital Limited [Mega], an investment holding Ghanaian company with interests in development, purchase, sale and rental of real estate and investment equities and fixed income investments. The agreement was for an investment in shares in a company in Malawi.
Mega sued Databank in the Commercial Division of the High Court of Malawi alleging that Databank had breached the agreement.
The said agreement provided that the jurisdiction to resolve any disputes arising thereout would vest in Ghana. We were retained with instruction to challenge the suit in the Malawian Court based on the jurisdiction agreement between the companies. Further, there was an active case in Ghana where Databank sued Mega for breach of the agreement and in which Mega would have raised the issues they brought up in Malawi. In view of the foregoing, we applied to strike out the case in Malawi on the grounds that the Malawian Court had no jurisdiction over the suit based on the agreement and that Mega was abusing the Court process as the grievances they raised in Malawi would have been properly brought under the active case in Ghana.
Upon hearing Counsel for both parties, the Court struck out the suit in Malawi because the Court lacked jurisdiction over it and it was an abuse of court process.
Doreen Manjandimo, an Associate in the Firm, handled the matter on behalf of Databank.