Kampala Asosciated Advocates representing city businessman Sudhir Ruparelia have responded to a statement issued by the Governor Bank of Uganda Prof. Tumusiime Mutebile criticizing court ruling of an Appeal case against the businessman in the Court of Appeal.
The court case, Crane Bank Limited (in Receivership) vs. Sudhir Ruparelia and Meera Investments Limited was initially thrown out after Justice David Wangutsi ruled that by the time of filing the case, Crane bank was non-existent and could not sue anyone.
According to a statement signed by BoU Governor Mutebile on Tuesday, the Central Bank revealed that receivership does not take away the corporate personality of a company which includes the right to trace and recover assets and the right to sue for those assets.
“BoU as receiver of Crane Bank is dissatisfied with the rulings of both the High Court and the Court of Appeal and has taken a decision to appeal to the Supreme Court in addition to pursuit of other legal recovery options,” Prof. Emmanuel Tumusiime-Mutebile, the Central Bank governor said in a signed statement.
“BoU wishes to reassure the public that it is committed to pursuing this matter to its logical conclusion,” he added.
Prof. Mutebile explained that Crane Bank had significant and increasing liquidity problems that could not be resolved without the Central Bank’s intervention given that Crane Bank had failed to obtain credit from anywhere else.
However, in reponse, Sudhir’s lawyers from Kampala Associated Advocates (KAA) say that the statement contained many inaccuracies and false statements
They say the High Court Civil Suit 493 was filed by the Bank of Uganda in the names of Crane Bank Limited in Receivership and court considered the case and determined that it was not legally tenable as there was no cause of action.
Download the full response: KAA press release
They add that BoU addressing the Court of Appeal urging them to ignore the fact that it had no cause of action and proceed to hear the case was inviting the courts to ignore the law
They also urge Bank of Uganda not to disrespect the Courts by criticizing it using the media yet it is the one that went to the same courts to seek redress in the first place.
