National News

Court of Appeal dismisses BoU’s case against Sudhir

KAMPALA —Businessman Sudhir Ruparelia has won a case in the Court of Appeal in which Bank of Uganda (BoU) contested the ruling of the lower court.

The court upheld the judgment of Commercial Court in an application filed by BoU seeking a refund of UGX 397 billion from Sudhir which he allegedly pulled out from Crane Bank.

“The person (petitioner) should pay cost and that is none other than Bank of Uganda because Margret Kasule filed on behalf of Bank of Uganda. They knew Crane Bank was in receivership as it wasn’t in existence but they went ahead to sue it” read the judgment.

Justice David Wangutusi of Commercial Court in August 2019 dismissed a case in which BoU claimed that Ruparelia and his Meera Investments Ltd fleeced his own Crane Bank Ltd (now in receivership) of UGX397 billion.

In his 22-page ruling that was delivered by the court’s deputy registrar, Mr Festo Nsenga, Justice Wangutusi noted that at the time BoU and Crane Bank (in receivership) filed the suit against Mr Ruparelia and his Meera Investments in January 2017, Crane Bank was a non-existing entity, having been terminated when the Central Bank sold its assets to DFCU Bank in October 2016.

The judge ruled that this rendered Crane Bank in receivership incapable of suing or being sued since there would be no assets to be claimed for.

Court noted that the public notice made it clear that BoU as the receiver had done an evaluation of the respondent (Crane Bank in receivership) and arranged for the purchase of its assets and assumption of its liabilities by another financial institution.

“In his [BoU] notice, he specifically stated that the liabilities of the respondent had been transferred to DFCU Bank Ltd and that because DFCU Bank had taken over the liabilities, it would, by way of consideration, be paid by conveying to it the respondent’s assets,” the judge ruled.

Bank of Uganda, through their new attorney Dr. Joseph Byamugisha of Byamugisha & Co Ltd he chose to file an appeal.

Related:

BoU unable account for 272 billion meant to save Crane Bank-Auditor General

Sudhir swindled 275bn injected into Crane Bank by BoU-Lawyers

Bagyenda forced us to buy Mbabazi bank-Sudhir

Bagyenda Closed ‘Amama Mbabazi Bank’ on phone

COSASE discovers Bagyenda took over BoU Lawyers work

4,458 Crane Bank Loan accounts duplicated-Katuntu

COSASE Summons Price Water Coopers over Crane Bank Closure

Former Crane bank staff demand Shs 48bn from BoU

How Sudhir Frustrated talks with Bank of Uganda

BoU Bosses Probed Over Closure of Banks

Report faults Bank of Uganda on 7 Closed banks

DFCU Bank threaten to Sue Rajiv Ruparelia

Auditor General raid BoU as forensic audit starts

DFCU makes record 127b profit in 2 years

Crane Bank Curse catches DCFU

DFCU shareholders doubt $25 million on IT upgrading

Report on Crane bank leaks

Crane Bank Curse catches DCFU

The bad loans that crippled Crane Bank

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