By our reporter
Court has set 26 August as the date when Commercial Court judge, Justice David Wangutusi, will give a ruling in the case brought against city businessman Sudhir Ruparelia by Crane Bank in receivership. During yesterday’s submissions, Sudhir’s lawyers led by Peter Kabatsi, argued that an institution in receivership has no right to sue or be sued since the Financial Institutions Act (FIA) which is a financial governing body does not say so.
On the contrary, Crane Bank in receivership lawyer led by Dr. Joseph Byamugisha submitted that when a financial institution is placed under receivership, it does not also lose its powers to sue or be sued since it still remains a corporate entity.
In the main case BoU had asked court to compel Sudhir pay Shs397 billion. Sudhir’s lawyers led by Kabatsi objected and reasoned that an institution in receiver has no right to sue because it is an illegality and as such the institution of the suit is an illegality quoting section 92.25a of the Financial Institutions Act (FIA)
Dr. Byamugisha says the actions weren’t commenced by BoU but rather by Crane Bank that could sue and be sued.
Byamugisha further said it is only the company with the right to sue but not the board because the board is suspended. However, this was contested by Sudhir’s lawyers.
In May 2019, Sudhir Ruparelia and Meera Investments lodged an application seeking court to dismiss a suit in which CBL in receivership sued the two applicants yet it had no legal capacity to do .
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