Furniture company loses CCJ battle

Aug 11, 2012 News

…not entitled to question increase of remuneration of receiver
A local furniture company under receivership has lost its appeal in the Caribbean Court of Justice (CCJ), questioning the legality of an increase of remuneration for the receiver.
According to a release from Luckhoo and Luckhoo law firm, on July 27, the Caribbean Court of Justice sitting in its Appellate Jurisdiction and comprising Sir Dennis Byron (President); Justices Adrian Saunders, Desiree Bernard, Winston Anderson and Jacob Wit, unanimously dismissed an appeal by Guyana Furniture Manufacturing Limited against a decision of the Court of Appeal of Guyana in the matter of Guyana Furniture Manufacturing Limited vs. Robert Ramcharran and National Bank of Industry and Commerce Limited (now Republic Bank Guyana Limited).
The regional court ordered the appellant, Guyana Furniture Manufacturing Limited to pay costs to both Ramcharran and the bank
In doing so, the Caribbean Court of Justice unanimously upheld the decision of the Guyana Court of Appeal which was delivered by Carl Singh, Acting Chancellor, and the decision of Ian Chang, S.C, Chief Justice (ag), at first instance.
In dismissing the Appeal, the Caribbean Court of Justice decided that the increase by the National Bank of Industry and Commerce Limited (now Republic Bank Guyana Limited) of Mr. Ramcharran’s remuneration as receiver of Guyana Furniture Manufacturing Limited so appointed by the bank under a debenture granted to it by Guyana Furniture Manufacturing Limited from 1% of gross receipts to 3% of gross receipts, was a permissible variation of the contract between the bank and Ramcharran as receiver.
The ruling also said that the company was not required to be consulted nor was its agreement required. It meant that Ramcharran was entitled to full payment of his commission.
The CCJ further held that the payment by Ramcharran of commissions to himself and to another accountant, Maurice Solomon, who had subsequently been appointed receiver by the Inter-American Investment Corporation under a prior debenture granted to that institution by Guyana Furniture Manufacturing Limited, was lawfully made from all the monies collected by Ramcharran.
The Caribbean Court of Justice agreed that receivers were entitled to be paid their respective commissions at the agreed rates out of all monies received by Ramcharran as National Bank of Industry and Commerce Limited’s receiver.
Guyana Furniture and Manufacturing Limited was represented at the hearing before the CCJ by Sir Fenton Ramsahoye, S.C, along with Messrs. R. Satram and C.V Satram, Attorneys-at-Law.
Ramcharran was represented by Edward Luckhoo, S.C, and Robin Stoby, S.C., and NBIC was represented by Rafiq Turhan Khan, Attorney-at-Law.

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Furniture company loses CCJ battle

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Furniture company loses CCJ battle

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