By Spy Uganda
Kampala: On June, 23, 2020, Court of Appeal in Kampala dismissed an appeal filed against city businessman Dr. Sudhir Ruparelia by Bank of Uganda and defunct Crane Bank in receivership, contesting Justice David Wangutusi’s 2019 ruling, in which he declared that BoU illegally wound up Crane Bank and sold it to DFCU bank under dubious circumstances.
Following the ruling, BoU Governor prof.Tumusiime Mutebile announced that matters would only be resolved by the Supreme Court. Meanwhile, the matter earlier this week on November 9, 2020, was finally brought to a conclusion, leaving BoU in more sorrows and regrets after the their application was thrown out disgracefully, with costs valued in millions.
The Supreme court Justice Mugamba who ordered BoU to meet all costs incurred by Sudhir during the process noted thus; “THE REPUBLIC OF UGANDA IN THE SUPREME COURT OF UGANDA AT KOLOLO CORAM: MUGAMBA, JSC (SINGLE JUSTICE) CIVIL APPLICATION NO. 33 OF 2020 ARISING FROM CIVIL APPLICATION NO. 32 OF 2020 ARISING FROM CIVIL APPEAL NO. 7 OF 2020 BETWEEN;
CRANE BANK LIMITED (IN RECEIVERSHIP) APPLICANT
1. SUDHIR RUPARELIA (1st Respondent)
2. UGANDA REGISTRATION SERVICES BUREAU (2nd Respondent)
This matter comes up for ruling this 9th day of November 2020 before His Lordship Honourable Justice Paul Mugamba, in the presence of Dr. Joseph Byamugisha and Mr. Albert Byamugisha for the Applicant, Mr. Elison Karuhanga and Mr. Bruce Musinguzi for the 1st Respondent and Mr. Allan Kakungulu for the 2nd Respondent.
IT IS HEREBY ORDERED AS FOLLOWS:
This application is dismissed with costs to the Respondents. GIVEN under my hand and the seal of this Honorable Court at Kampala this dày of November 2020.”
Background Of The Case
On June 30, 2017, Crane Bank Limited (in Receivership) took Mr. Sudhir Ruparelia and his Meera Investments Ltd. to court for allegedly causing financial loss amounting to UGX 397 billion to Crane Bank in fraudulent transactions and land title transfers.
Crane Bank (in receivership) in its Civil Suit No. 493 of 2017 sought High Court to compel Mr. Ruparelia to pay back the US$80,000,000, US$9,270,172.00, US $ 3,560,000.00, US$990,000.00 and UGX 52,083,995.00 as compensation for breach of fiduciary duty.
While Hon. Justice Wangutusi dismissed the UGX397 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.