The Supreme Court has once again ruled that the Central Bank must meet the costs as ordered earlier after losing a case regarding the closure and liquidation of Crane Bank Ltd.
In February 2022, the same court dismissed, with costs, an appeal by the Bank of Uganda against businessman Sudhir Ruparelia and his real estate arm—Meera Investments Limited.
The court also ordered Uganda’s banking sector regulator to pay costs at all court levels, right from the Commercial Bank and directed that Crane Bank is reverted to its owners.
In her disposal notice given on July 1, 2022, Prof. Justice Lillian Tibatemwa-Ekirikubinza, said, “The appeal is hereby dismissed with costs in the terms found by the Court of Appeal. The costs shall be borne by Bank of Uganda.”
“The dismissal of the Appeal shall take effect from the date of this judgment, being 11th February 2022,” she added.
Justice Tibatemwa noted that the Appellant’s receivership ended on 20th January 2018 and consequently its management reverted to the shareholders.
She revealed that “once a company is placed under receivership, it doesn’t lose its legal existence.”
Accordingly, Crane Bank was a closed Bank financial institution on being placed under receivership and the end of receivership means that the Assets and Liabilities of Crane Bank reverted to its shareholders.
The February 11th, 2022 ruling brought to an end the long-standing commercial dispute between the businessman Sudhir and the Ugandan bank regulator, dating back to 2017.
The ruling confirmed Mr. Sudhir as no longer liable for the UGX397b that Bank of Uganda was claiming from his shareholding, a figure also separately dismissed by the Auditor-General and a Parliamentary inquiry.