Vanessa Awurabena Davis Esq, AB Lexmall & Associates, explores the ruling of the High Court in Accra regarding the commencement of the liquidation of a licensed insurance company through an Originating Motion on Notice, as opposed to a Petition for Liquidation. The Court’s decision was based on specific provisions in the Insurance Act, 2021 (Act 1061) and the Corporate Insolvency Act, 2020 (Act 1015), which fall under Order 19 rule 1(2) of the High Court (Civil Procedure) Rules, 2004 (C.I. 47).
The National Insurance Commission (NIC) applied to the High Court in accordance with Section 94 of the Insurance Act, seeking to wind up a licensed insurance company in Ghana due to non-compliance with the terms and conditions of its license. The NIC appointed a Statutory Manager to rescue the company, but after no prospects for investment were found, the NIC opted to seek an official winding up order from the Court.
Sections 92 (a), 93(1), and 94(1) of Act 1061, as well as Section 84 of Act 1015, provide the legal framework for the NIC to petition the Court for the liquidation of a licensed insurer. The use of an Originating Motion on Notice rather than a Petition under the Corporate Insolvency and Restructuring Act, 2020, was deemed appropriate and in accordance with the relevant laws.
The decision was supported by the High Court (Civil Procedure) Rules, 2004 (C.I. 47), Order 19 rule 1(2), which allows for the initiation of proceedings by motion where an enactment so provides.
This particular case highlights the expeditious nature of an Originating Motion on Notice when seeking the winding up of a licensed insurer, in line with the provisions of Acts 1061 and 1015. The use of the word ‘petition’ in the Insurance Act does not align with more specific petition procedures in other areas of the law. Instead, an Originating Motion on Notice provides a swift and effective means of addressing the matter at hand.