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NANA YAA KONADU VRS ALHAJI ABDUL RASHEED

Case

by DOTSE, JSC (PRESIDING) APPAU, JSC PWAMANG, JSC DORDZIE (MRS.), JSC PROF. KOTEY, JSC

Jurisdiction

SUPREME COURT

Judge

DOTSE, JSC (PRESIDING) APPAU, JSC PWAMANG, JSC DORDZIE (MRS.), JSC PROF. KOTEY, JSC

Catalog Type

Case

Judgement Date

Nov 18, 2020

Summary

Matrimonial Property – Informal Documents – Conveyancing Formalities – Separate Legal Personality – Article 22 of the 1992 Constitution – Equal Distribution of Property. The Supreme Court decision delivered by Appau JSC concerns the legal effect of an informal document (Exhibit ‘E’) and the applicable principles governing the distribution of matrimonial property upon divorce. The dispute originated from a petition for dissolution of marriage brought by the wife, who initially claimed that no jointly acquired property existed between the parties except their jointly owned company, Nayak Company Ltd. However, the husband, in his answer and cross-petition, asserted that numerous properties had been jointly acquired during their 32-year marriage. In response, the petitioner claimed exclusive ownership of some of these properties based on a handwritten document (Exhibit ‘E’), allegedly executed by the respondent, ceding his interest in those properties to her. The trial High Court upheld the validity of Exhibit ‘E’, treating it as a binding agreement between the parties and concluding that the properties listed therein belonged exclusively to the petitioner. It further ordered equal distribution of the remaining properties. On appeal, the Court of Appeal reversed this decision, holding that Exhibit ‘E’ did not satisfy the legal requirements of a valid conveyance under the Conveyancing Act, 1973 (NRCD 175), as it lacked attestation and witnessing. It therefore declared the document ineffective in transferring property and ordered that all jointly acquired properties be shared equally. On further appeal, the Supreme Court affirmed the decision of the Court of Appeal. The central issue was whether Exhibit ‘E’ was legally enforceable to transfer interests in landed property. The Court held that any document purporting to transfer an interest in land must comply with statutory formalities under the Conveyancing Act, including execution, attestation, and, where applicable, compliance with company law. Exhibit ‘E’, being a unilateral, unwitnessed document, failed to meet these requirements and was therefore incapable of conveying title. At best, it amounted to a mere declaration of intention without legal effect. The Court rejected the argument that the marital relationship between the parties exempted the document from formal legal requirements. The Court further emphasized the doctrine of separate legal personality, holding that properties owned by a company could not be transferred by individual shareholders without complying with company law procedures. Thus, any attempt by the respondent to transfer company-owned property through Exhibit ‘E’ was legally ineffective. On the distribution of matrimonial property, the Court reaffirmed the constitutional principle under Article 22(3) that property acquired during marriage is presumed to be jointly owned and must be distributed equitably. The Court endorsed the modern “jurisprudence of equality,” rejecting the outdated presumption of advancement in favour of wives. It held that all properties acquired during the marriage, whether in the name of one or both spouses, were jointly owned unless proven otherwise. Consequently, the Court upheld the equal (50-50) distribution ordered by the Court of Appeal, including the matrimonial home, rejecting the petitioner’s claim for exclusive ownership. On the cross-appeal, the Supreme Court found that the Court of Appeal erred in declaring the Kumasi property as exclusively belonging to the petitioner. The evidence showed that the property was owned by the jointly held company, and not by the petitioner personally. The Court therefore reversed that finding and held that the property should be treated as company property, subject to company law principles. In conclusion, the Supreme Court dismissed the appeal and allowed the cross-appeal in part, affirming that Exhibit ‘E’ was legally ineffective and that all matrimonial property acquired during the marriage should be distributed equally. The decision reinforces strict compliance with conveyancing formalities and consolidates the principle of equality in the distribution of marital property in Ghana.

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