Supreme Court Upholds Annulment of US$33.3 Million APSL Arbitration Award
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TL;DR
- Supreme Court dismissed APSL's challenge to the annulment of a US$33.3M arbitral award.
- High Court previously set aside the award in May 2026 over corporate capacity defects.
- Arbitration involved APSL and Justmoh Construction regarding the Boankra Inland Logistics Terminal Project.
- Supreme Court decision leaves the High Court's annulment in place.
Overview
The Supreme Court dismissed Ashanti Port Services Ltd.'s (APSL) challenge against the High Court's decision annulling a US$33.3 million arbitral award originally granted to APSL against Justmoh Construction Ltd. The dispute centered around failed financing and contract issues in the Boankra Inland Logistics Terminal Project, with the courts finding APSL lacked proper corporate capacity to initiate arbitration.
What Happened
On July 14, 2026, the Supreme Court, by unanimous decision, rejected APSL's application challenging the High Court's prior annulment of a US$33.3 million arbitral award rendered against Justmoh Construction.
The High Court, Commercial Division 2, had set aside the arbitral award in May 2026 after identifying defects related to APSL's corporate capacity and improper board constitution under the relevant Shareholders' Agreement.
The dispute arose from APSL's failure to achieve financial close on the Boankra project, with subsequent arbitration initiated over a US$33.3 million amount paid to Justmoh under a share subscription arrangement for project mobilisation.
The arbitral tribunal originally found in APSL's favor, but the High Court ruled APSL could not validly commence arbitration without board authorization, and retrospective ratification attempts were invalid.
The Supreme Court's ruling affirms the High Court's decision and leaves the annulment of the arbitral award in force.
Context
The Boankra Inland Logistics Terminal is a significant infrastructure project in Ghana involving multiple public and private stakeholders. APSL was tasked as project company, with Justmoh Construction appointed for the first phase of works.
APSL was unable to achieve required financial close, leading to the Ghana Shippers' Authority's termination of the concession and state intervention.
The dispute reflects continued judicial scrutiny over corporate governance and capacity in arbitral proceedings and project finance contracting.
Why It Matters
- The ruling definitively resolves the legal challenge to a high-value arbitral award within a multi-party infrastructure dispute.
- It underscores the critical importance of proper corporate capacity and board authorization in initiating arbitral proceedings.
- The outcome protects the integrity of commercial arbitration by reinforcing procedural and governance standards.