Lawyers representing Meera Investments Ltd and businessman Sudhir Ruparelia have expressly told Bank of Uganda (BoU) that there is no pending case in regard to the controversial takeover of Crane Bank.
In a statement, Kampala Associated Advocates (KAA) said the withdrawal of the main appeal before the Supreme Court—coupled with the recent ruling on who should pay legal costs—disposed of the five-year legal battle in its entirety.

“We would like to inform the public that on February 11, 2022, the Supreme Court finally and conclusively determined the dispute between BoU and our clients (Meera Investments and Mr Ruparelia),” a statement issued on Friday reads in part.
It adds: “The effect of the Supreme Court decision is that the company has reverted to its shareholders. The decision also means that BoU lost control of Crane Bank from January 20, 2018 and any decision made on behalf of Crane Bank by BoU is reversed. This is not a mere technicality.”

A week ago, the central bank issued a statement, stating that prior to the recent Supreme Court ruling on who should foot the legal costs, Crane Bank in receivership had filed for review of some of its findings, which application had up to date not been heard.
BoU also contended that a decision on the said application for review could impact on the final outcome of this dispute.
“One of the grounds of that application relates to the interpretation and application of repealed/substituted section of the Financial Institutions Act, 2004,” BoU’s statement read in part.

“The determination of that application is critical in guiding BoU implementing the court decisions,” the statement reads further.
KAA lawyers, however, insist that there is no such pending application before the Supreme Court.
They hold that “this review application arises from an appeal, which was finally determined by their own withdrawal (BoU own withdrawal of the main appeal). It, therefore, stands moot.”

The lawyers have also said their clients will take the necessary steps to ensure BoU complies with the orders of the Supreme Court, the Court of Appeal and the High Court.
On February 11, the Supreme Court ordered the central bank to foot all the legal costs that Mr Ruparelia incurred during his defence. The five justices, in their unanimous ruling, held that it was BoU behind the suing of Meera Investments and Mr Ruparelia and not Crane Bank in receivership since it didn’t have the powers “to sue” or “be sued.”

Background

The facts that led to this Shs397b legal battle is that on October 20, 2016, Crane Bank was placed under statutory management by BoU for being under capitalised.
The central bank placed Crane Bank under receivership, with some of its assets and liabilities sold to dfcu Bank.
On June 30, 2017, Crane Bank in receivership filed a commercial case before the High Court, Commercial Division, in which it was seeking to recover more than Shs397b from Mr Ruparelia, accusing him of misappropriating the funds as the director and shareholder with his Meera Investment Company.

But on August 29, 2019, the court dismissed the dispute on grounds that Crane Bank in receivership lost its legal powers “to sue” Mr Ruparelia or “to be sued” the moment it was placed under receivership.
Crane Bank in receivership lodged an appeal before the Court of Appeal, which appeal was equally dismissed on similar grounds.
Crane Bank in receivership appealed to the Supreme Court. It, however, withdrew the main appeal even before the court could hear it out.

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