Kampala Associated Advocates the lawyers that represented tycoon Sudhir Ruparelia and Meera Investments in the landmark Supreme Court victory over Bank of Uganda in the Crane Bank case have lashed out at the central bank’s statement following the ruling.
“Our attention has been drawn to a statement issued by Bank of Uganda on the Supreme Court Ruling in Civil Appeal No. 07 of 2020; Crane Bank Limited (In Receivership) Vs Sudhir Ruparelia and Meera Investments Limited. We have noted with concern that the statement contains many incorrect assertions, and it has become necessary for us to respond to it to set the record straight,” a press statement from KAA reads in part.
BOU via CBL filed a case in the High Court (Civil Suit No. 493 of 2017) against Sudhir Ruparelia and Meera Investments Limited.
“We objected to the case on the basis that it had no merit. The suit was dismissed with costs against BOU. BOU, through CBL, then appealed to the Court of Appeal (Civil Appeal No. 252 of 2019),” the KAA statement reads.
“The Court of Appeal upheld all the findings of the High Court and dismissed the Appeal with costs against BOU and also found that receivership had ended in January 2018 in accordance with the express provisions of the law. BOU then appealed to the Supreme Court (C.A 07 of 2020).”
However, the BOU had earlier filed applications for inductions on two parties preventing them to take ownership since the receivership had expired. The Supreme Court dismissed both applications.
“Not only did the Supreme Court find that the Applications had no merit, but it also found that the Bank of Uganda was acting in bad faith. The Supreme Court also found that there was very little chance of success in the appeal that had been filed by Bank of Uganda.”
The Supreme Court dismissed the case and ruled that Appellant’s receivership ended on 20th January 2018 and thereafter its management reverted to the shareholders.
“We would like to inform the public that on 11th February 2022, the Supreme Court finally and conclusively determined the dispute between BOU and our Clients,” the KAA statement reads.
“The effect of the Supreme Court decision is that the company has reverted to its shareholders. The decision also means that BOU lost control of CBL from the 20th of January, 2018 and any decision made on behalf of CBL by BOU is reversed. This is not a mere technicality. This is a fundamental principle- those in authority must act in accordance with the express provisions of the Law. BOU cannot exercise power outside or against the law. Nor is it above the law.”
“The statement by BOU that a review application is pending before the Court is incorrect. This review application arises from an appeal which was finally determined by their own withdrawal. It therefore stands moot. Contrary to the assertions of BOU, the ruling of the court was within the ambit of the Financial Institutions Act. It was overtaken by events.”
“The import of the Supreme Court decision is that BOU is also subject to the laws of Uganda and cannot act in a manner that places it beyond the reach of the law. BOU must act within the four corners of the laws of Uganda.”
“Our Clients shall take all the necessary steps to ensure that BOU complies with the Orders of the Supreme Court, the Court of Appeal and the High Court of Uganda.”
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