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BoU, Crane Bank to appeal Monday court ruling

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Crane bank (in receivership) intends to appeal against the whole of the decision given by Justice David Wangutusi on August 26, 2019, as per Notice of Appeal Application 320 of 2019 filed in the High court, Tuesday.

The High court Justice Wangutusi on Monday, August 26, ruled that Crane bank (in receivership) did not have any jurisdiction to file Civil Suit No. 493 of 2017 against Mr. Sudhir Ruparelia and Meera Investments Limited, and therefore dismissed the suit.

Crane bank (in receivership) is dissatisfied with the decision of Justice Wangutusi, and has served a copy of the Notice of Appeal to Kampala Associated Advocates, the legal representatives of Mr Sudhir Ruparelia and Meera Investments Limited.

On June 30, 2017, Crane Bank Limited (in receivership) took Mr. Sudhir Ruparelia and his Meera Investments Ltd. to court for causing financial loss amounting to Shs 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 $80,000,000, $9,270,172.00, $ 3,560,000.00, $990,000.00 and Shs 52,083,995.00 as compensation for breach of fiduciary duty.

While 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.

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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