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Court of Appeal throws out multi-billion case against Sudhir
A photo montage of defunct Crane Bank, Sudhir Ruparelia and Bank of Uganda governor Emmanuel Tumusiime-Mutebile
What you need to know:
The financial institution where Mr Ruparelia was one of the directors and shareholders, had sought recovery of the said money and delivery of freehold certificates of titles to 48 properties.
However, the businessman, successfully argued that when Crane Bank went into receivership, it lost its powers to “sue” and to “be sued”, rendering its suit against him and Meera Investments Company, a nullity; which argument the Commercial Court and now the Court of Appeal, have agreed with him.
The Court of Appeal has today thrown out a multi-billion appeal case in which Crane Bank in receivership, had sought to overturn a judgment of the Commercial Court that was in favour of property mogul, Sudhir Ruparelia.
In a unanimous verdict, three justices of the Nakasero-based court led by Deputy Chief Justice, Alfonse Owiny-Dollo, agreed with the decision of then Commercial Court judge David Wangutusi, that once Crane Bank was placed under receivership, it lost its powers to sue Mr Ruparelia. The other justices of the court were; Cheborion Barishaki and Steven Musota.
“Turning to the facts of this case, under Section 96 of the Financial Institutions Act, it is clear that there is a protection granted to the financial institution in receivership against being sued. In light of Meera Investments decision, it would be unfair to say that the financial institution can sue and on the other hand, it cannot be sued,” ruled the justices of the court
Adding: “A person who is protected from suits under the law is also prohibited from suing. It’s therefore our finding that this ground should be decided in the negative. The learned trial judge was right to find that a person who cannot be sued, cannot sue. The law protects the appellant (Crane Bank in receivership) from the process of court, cannot then empower it against other court users. This would make the appellant (Crane Bank in receivership) enjoy an unequal treatment before the law compared to the respondents (Mr Sudhir and Meera Investments).”
The court also went ahead to dismiss the appeal with costs to the businessman both at the appeal level and at the High Court level.
One of the lawyers of Mr Sudhir, Mr Jet Tumwebaze, said he expects the bill of costs to be over Shs1b that Bank of Uganda will have to pay on behalf of Crane Bank in receivership.
Crane Bank in receivership, in its law suit it filed on June 30, 2017, accused Mr Ruparelia of taking Shs397b out of the financial institution in fraudulent transactions and land title transfers.
The financial institution where Mr Ruparelia was one of the directors and shareholders, had sought recovery of the said money and delivery of freehold certificates of titles to 48 properties.
However, the businessman, successfully argued that when Crane Bank went into receivership, it lost its powers to “sue” and to “be sued”, rendering its suit against him and Meera Investments Company, a nullity; which argument the Commercial Court and now the Court of Appeal, have agreed with him.
