UGANDA, Kampala | Real Muloodi News | UPDATE: 19th November 2021: The Bank of Uganda (BoU) has been ordered by the High Court and the Court of Appeal to pay Sudhir Ruparelia’s legal expenses in a long-running legal battle between his Meera Investments Ltd and the central bank, a matter that predates the collapse of Crane Bank Ltd.
After the central bank lost its case in which it attempted to recover USh397 billion from Sudhir, the respondents (Sudhir and Meera investments) asked for costs to be awarded against BOU, because BOU was the entity who instituted the suit.
The High Court and the Court of Appeal agreed with the respondents, finding that BoU has no justification for refusing to pay Sudhir, and awarded them costs. Meanwhile, the Supreme Court has yet to decide how much BoU will compensate Sudhir.
Previous Update: Tuesday16th November 2021: On January 20, 2017, the Bank of Uganda (BOU) placed Crane Bank Uganda under receivership and sold its assets to DFCU Bank. Since then, there have been a series of battles in the court. The latest development in the case demands the Supreme Court justices to order BoU to pay all costs incurred during the case.
Lawyers representing Dr Sudhir Ruparelia include Peter Kabatsi, Joseph Matsiko, and Elison Karuhanga. They claim BoU was behind the commercial dispute against Dr Sudhir and not Crane Bank being a receivership, as portrayed by the central bank’s lawyers. The battle now revolves around who is paying for the costs incurred as BoU pushed for the case to be closed.
Attorneys explained that since Crane Bank does not exist anymore, hence is not in a position to pay any costs and the reason BoU wants to close this case is to avoid paying court costs.
The lawyers clarified during the case proceedings: “Crane Bank is no longer in existence; hence it cannot be ordered to pay costs since it had been closed by BoU. Then why do they want to withdraw the case? This is their move to avoid paying our client’s costs. Therefore, until this court directs otherwise, the appeal is still pending. That is why it was cause-listed today for mention. My Lords, that notice of withdrawal, purports the reversal of who pays the costs.”
The presiding judge had dismissed the commercial dispute in the past because Crane Bank had already lost its legal powers when it was put under receivership. Therefore, it is not in any position to pay costs as it does not exist.
Yet, BoU withdrew the case, claiming they are no longer interested in prosecuting it, attempting to do away with any potential payable costs.
Dr Sudhir expressed that he now waits for the judges to issue their decision, end the case, and identify who is liable to pay for the costs.
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