Sudhir files another suit against Bank of Uganda

Prominent businessman Sudhir Ruparelia and Meera Investments have lodged an application seeking court to dismiss a suit in which Crane Bank Limited (CBL) in receivership sued the two applicants yet it had no legal capacity to do so.

Bank of Uganda (receivership) took-over CBL before it gave it away to Dfcu at what some considered to be a throw away price.

. “…I have been advised by lawyers, Kampala Associated Advocates, which advice I verily believe to be true, that under the Constitution and the Land Act, the Respondent cannot own and hold freehold property and is therefore, not capable of holding the suit property in its names,” the application continues.

Sudhir said he was sued as a sole shareholder of CBL, which is not true and that the respondent has no powers to commence against CBL shareholders or Sudhir himself.

According to the application, the businessman wants Crane Bank Limited (in receivership) to pay National Social Security Fund (NSSF) the statutory debts. CBL in receivership was in the hands of BoU between October 20, 2016 and January 25, 2017 before its assets were controversially transferred to Dfcu bank by BoU.

The application was lodged on April 30, 2019 and court has set July 3, 2019 as date to decide whether the plaintiff has no locus standi to commence actions against the applicant in High Court Civil Suit (HCCS) No 493 of 2017 against the applicants.

Court also will rule whether the plaint does not disclose the cause of action against the applicant and determine whether orders against second applicant (Meera Investments) are barred by the law but court will also determine whether the suit will be dismissed with costs as desired by applicants.

The suit comes days after court put a permanent injunction on law firm Lule & Sebalu Advocates in cases involving the Ruparelia Group since the law firm at one time represented Sudhir or his companies.

The High Court made the ruling in a case where Sudhir was seeking the law firm hired by the Dfcu bank and Bank of Uganda to be declared conflicted, and therefore, unfit to represent the parties in a longstanding commercial dispute.

Sudhir through his Real Estate Company; Crane Management Services some time back sued Dfcu bank demanding rental arrears amounting to Shs2.9 billion and US $385,728.54 in respect of tenancies of suit properties that were formally owned by Crane Bank Limited.

Dfcu bank which controversially bought off CBL had hired Sebalu & Lule Advocates.

Sudhir said he contracted the same law firm in 2006 to draw and review tenancy agreements in respect of the said rental premises thus there is conflict between the lawyer and his client.