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BoU Moves to Have Sudhir Ruparelia Court Victory Overturned

Sudhir Ruparelia. Courtesy Photo

Bank of Uganda (BoU) and Crane Bank, under receivership, have announced they will appeal to have the court victory of tycoon Sudhir Ruparelia and Meera Investments quashed.

On August 26, Justice David Wangutusi of the Commercial Division of the High Court in Kampala ruled that Crane Bank, under receivership, had no jurisdiction to sue Ruparelia and Meera Investments Limited.

He dismissed a suit in which Crane Bank and BoU sought to recover Shs 397bn which they claimed Ruparelia and Meera Investments had fraudulently transferred from Crane Bank to other accounts.

“The plaintiff/ respondent Crane Bank, then under receivership did not have jurisdiction to file HCCS no. 493 of 2017,” ruled Wangutusi.

“… the respondent (Crane Bank in receivership), at the time it filed this suit, was not in existence, its life time having been terminated when it was surrendered to dfcu Bank whose consideration was the dfcu assumption of the respondent’s liabilities…”

Tycoon Sudhir Ruparelia Warns Dfcu Bank after Wining BoU-Crane Bank Case

According to a statement issued by Charity Mugumya, the Central Bank’s director of communication, as well as a series of statements on the institution’s social media pages, BoU will appeal Wangutusi’s decision.

Already, BoU has filed a notice of appeal registered as Application 320 of 2019.

According to the statement, BoU says they have already served the notice of appeal to Mr Ruparelia’s lawyers; Kampala Associated Advocates (KAA), notifying them about this development.

Mugumya’s statement also reveals that BoU has notified Ruparelia’s lawyers of Kampala Associated Advocates the intention to appeal.

“While Hon Justice Wangutusi dismissed the Shs 397 billion case against Mr Ruperalia on a technicality, alleging that Crane Bank (in Receivership) lost its powers to “sue” and to “be sued”, thus rendering its suit a nullity, Crane Bank (in Receivership) maintains that receivership is a management situation, and hence no legal change as to capacity of a company to sue and be sued,” read Mugumya’s statement in part.

“Bank of Uganda would like to reassure the public that it is committed to pursuing this matter to its logical conclusion.”

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