The Supreme Court has dismissed with costs an appeal filled by the Bank of Uganda challenging
City tycoon Sudhir Ruparelia, proprietor Meera Investments over the mismanagement of Crane Bank Ltd.
Bank of Uganda and Crane Bank in receivership first sued Sudhir in the High Court Commercial Division in 2017 for misappropriating funds amounting to Shs 397 billion while a Director and Shareholder at the bank. Bank of Uganda wanted the money refunded.
However, Presiding Judge David Wangutusi dismissed the case on a technicality, alleging that Crane Bank (in Receivership) lost its powers to sue and to be sued, thus rendering its suit a nullity.
Bank of Uganda appealed the ruling contending that receivership is a management situation, and hence no legal change as to the capacity of a company to sue and be sued.
Again, the Supreme Court Registrar Mary Babirye on behalf of five Justices of the Supreme Court; Opio Aweri, Faith Mwondha, Lillian Tibatemwa, Ezekiel Muhanguzi and Percy Night Tuhaise, the Court have ruled that receivership of Crane Bank Limited ended on January 20, 2018, and from that date, the management and control of Crane Bank returned to its Shareholders.
“We equally considered this aspect in our ruling and found that indeed, receivership of the appellant (Crane Bank in receivership) had ended on January, 20, 2018. The implication of that finding in our view is that the management of the appellant be reverted to shareholders after the January, 20, 2018,” the court directed.
Crane Bank Limited was closed by the Bank of Uganda on October 20, 2016, after it failed to comply with a capital call on July 1, 2016.
The deceased Central Bank Governor Emmanuel Tumusiime Mutebile said that the Bank takeover was guided by the systemic nature of the under-capitalized institution to avoid financial sector instability.
