Bank of Uganda has run to the Supreme Court to challenge the decision of the Court of Appeal to dismiss the case filed by Crane Bank in receivership against city tycoon Sudhir Ruparelia and Meera Investments Ltd seeking to recover over Shs397 billion.
The money was reportedly siphoned from the defunct Crane Bank.
On June 23rd 2020 three Court of Appeal justices led by the acting Chief Justice Alfonse Owiny Dollo ruled that Crane Bank has no capacity to sue because it is non-existent after Bank of Uganda sold it to DFCU bank in October 2016.
However Bank of Uganda maintains 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 contends the case against Sudhir and his Meera Company was necessary for recovery of the taxpayers’ money used to pay depositors’ funds as well as the other liabilities of Crane Bank.