The Commercial High Court in Kampala will today give its decision on the preliminary objection by Dr Sudhir Ruparelia in the case where Central Bank of Uganda dragged him to court seeking to recover shs 397bn.
Before Justice David Wangutusi, Dr Ruparelia through his lawyers of Kampala Associated Advocates asked court to dismiss the Central bank’s case arguing that the bank wrongfully sued him.
It should be noted that Bank of Uganda on January 25, 2017 placed former Crane Bank under receivership and in the same year, the bank sued Crane bank and Sudhir Ruparelia claiming that he defrauded his own bank of the said money through fraudulent transactions.
However, Dr. Sudhir rushed to court and counter sued Bank of Uganda seeking compensation of $8m (Shs28b) in damages for breach of contract.
During the last hearing, his lawyer Elison Karuhanga told court that when dissolving a bank, BoU had options of putting someone in management under statutory management, receivership and liquidation.
Lawyers also faulted Central bank for rushing and overstepping its mandate in selling off Crane Bank to dfcu Bank.
Under the law, Bank of Uganda had 12 months within which to carry out the four functions which did not include suing.
By the time of bank of Uganda taking up Crane bank, Sudhir Ruparelia was no longer the majority shareholder of Crane Bank after Rasik Kantaria, a Kenyan investor , on December 6, 2010 acquired 47% of the bank’s shares.
Kantaria later transferred his shares to White Sapphire Ltd, a Mauritius based company and a one Jitendera Sanghani, a British citizen, held 4 per cent stake in Crane Bank.
Ruparelia has won several malicious cases brought against him by Bank of Uganda after grabbing Crane bank and allowing it to be swallowed by Dfcu bank.
Dr. sudhir has on many occasions defeated the bank through courts and blocked BoU lawyers of MMAKS Advocates and Sebalu & Lule Advocates who were also his former lawyers from representing it in cases related to him because of conflict of conflict.
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