BOU LOSSES APPEAL CASE, TO PAY OVER 1BN SHS COSTS TO TYCOON SUDHIR

Posted On 23 Jun 2020

By : mk

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By Our Reporter
www.mknewslink.com
In Kampala—

Following the Judgement of Court of Appeal today which chased a multi-billion appeal case in which Crane Bank in receivership, had sought to overturn a judgment of the Commercial Court that was in favor of tycoon Sudhir Ruparelia, Bank of Uganda is expected to pay the bills of costs of over 1bn shs.
The court today has dismissed the appeal with costs to the businessman both at the appeal level and at the High Court level and according to one of the lawyers of Tycoon Sudhir, Jet Tumwebaze, 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.
In a verdict, three justices of the court of appeal 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.
A judgement ruled that its clear that there is a protection granted to the financial institution in receivership against being sued.
The Judges also added that a person who is protected from suits under the law is also prohibited from suing adding that the law protects the appellant (Crane Bank in receivership) from the process of court, cannot then empower it against other court users.