Businessman Sudhir Ruparelia talks to the media. Five Supreme Court Justices have unanimously dismissed an application by Bank of Uganda to amend its appeal in which it challenges a ruling by the appellant court in favor of former owner of Crane Bank and Meera Investments ltd.
If successful, the amendment would have reversed the several losses the Central Bank has suffered at the hands of businessman Dr Sudhir Ruparelia and his company Meera Investments Ltd.
The 5 justices, Rubby Opio-Aweri, Faith Mwondha, Dr Lillian Tibatemwa, Ezekiel Muhanguzi and Percy Night Tuhaise in unison dismissed BoU’s bid to substitute Crane Bank in Receivership with Crane Bank in Liquidation a move the justices said would fundamentally alter the facts the case and deny both Dr. Sudhir and Meera a chance at justice.
This latest application to switch parties emanates from the 20th of October 2016 statutory takeover of Crane Bank Limited under the Financial Institutions Act and subsequently placed it under receivership on 20th January 2017, before selling its assets and liabilities to dfcu Bank on the 25th of January 2017.
Thereafter Bank of Uganda, through Crane Bank in Receivership sued Sudhir Ruparelia, one of the Shareholders of the bank, together with Meera Investments Ltd
Before the main case could be heard, Dr Sudhir and Meera, raised preliminary objections through the High court in which they argued that Crane Bank in Receivership had no basis for suing since the law did not allow a company in receivership any powers to sue or be sued.
The High Court sustained the preliminary objections and dismissed the case Bank of Uganda and ordered it to the costs of the suit to Sudhir Ruparelia.
Dissatisfied with the High Court ruling, Crane Bank Limited in Receivership filed an appeal, but the appellate court maintained that a company under receivership can’t sue or be sued.
Crane Bank Limited in receivership then appealed against the decision of the Court of Appeal in the Supreme Court, which is pending resolution.
To stop Dr Sudhir and Meera Investments from enforcing the ruling of the Court of Appeal to regain their company, Crane Bank Limited in Receivership also filed Supreme Court application against Sudhir Ruparelia which was dismissed.
Following this court defeat of the Bank of Uganda on 15th November 2020, BOU issued a public notice in the a local newspaper to the effect that it had placed Crane Bank Limited under liquidation and ordered the winding up of its […]
