Breaking news: Court orders  Crane bank reverts to Sudhir, orders BoU to pay court costs at all levels.

Bank of Uganda (BoU) /Crane Bank in receivership sued Sudhir Ruparelia and Meera Investments Limited of allegedly fleecing the defunct Crane Bank Limited (CBL) of Shs397 billion that the central bank wants to be refunded.

The Commercial Court  in 2019 dismissed the case Bank of Uganda had lodged against Sudhir Ruparelia seeking to recover Shs 379 billion from him.

The court, therefore, ruled that Crane Bank was a non-existent entity since it went into receivership three years ago.

After losing the case, BoU ran to the Court of Appeal to challenge the lower court’s decision but again lost the case prompting them to run to the Supreme Court.

However, shortly after filing an appeal, BoU sought to withdraw it before it could be heard,  prompting Sudhir’s lawyers of Kampala Associated Advocates objected to the withdraw.

On Friday, five justices of the Supreme Court including Rubby Opio Aweri, Percy Tuhaise, Ezekiel Muhanguzi,Prof.Tibatemwa Ekirikubinza and Faith Mwondha dismissed the appeal by BoU but also directed that the central Bank pay costs in the terms found by the Court of Appeal.

“For avoidance of doubt, the Court of Appeal upheld the finding of the trial court which ordered that the costs of the suit were to be borne by the Bank of Uganda since it was behind the filing of the suit and other subsequent actions. That order shall stand,” the Supreme Court directed.

The five justices also reasoned with the Court of Appeal that management of Crane Bank be returned to the shareholders including Sudhir Ruparelia and Meera Investments Limited since receivership had ended in 2018.