Business mogul Dr. Sudhir Ruparelia has won the battle in the sale of the now-defunct Crane Bank following withdraw of 397 billion shillings suit against him and his Meera Investments Ltd by the bank of Uganda.
Bank of Uganda has withdrawn a Supreme Court appeal that was contesting the Court of Appeal’s dismissal of the case filed on behalf of Crane Bank Ltd (in Receivership) vs. Sudhir Ruparelia and Meera Investments Ltd.
In a withdrawal notice dated September 15, the Supreme Court Registrar indicates that BoU has decided not to prosecute the appeal and will pay all costs due for the case.
In June last year, the Court of Appeal in Kampala dismissed an appeal filed by Bank of Uganda against an earlier judgment that had dismissed a shs397 billion commercial dispute between Crane Bank in receivership and businessman Sudhir Ruparelia.
Bank of Uganda (BoU) /Crane Bank in receivership sued Sudhir Ruparelia and Meera Investments Limited of allegedly fleecing the defunct Crane Bank Limited (CBL) of Shs397 billion that the central bank wants to be refunded.
However, Justice David Wangutsi of the Commercial Court dismissed the case Bank of Uganda had lodged against Sudhir Ruparelia seeking to recover Shs 379 billion from him.
While dismissing the case in 2019, the Commercial Court held that once Crane Bank was placed under receivership, it was insulated against legal proceedings according to Section 96 of the financial institutions act (fia) and, therefore, had no powers to sue Ruparelia.
According to Justice Wangutusi on august 26/2019 while dismissing the 397 billion case against Ruparelia alleged that crane bank lost its power to sue and be sued
The lower court therefore, ruled that Crane Bank was a non-existent entity since it went into receivership three years ago which forced BoU ran to the Court of Appeal to challenge the lower court’s decision though it lost the case again.
“People should not hide behind non-existent persons, file frivolous suits, and seek that courts should make orders as to costs against non-existent persons,” Court of Appeal judges ruled.