By Spy Uganda
In Supreme Court ruling delivered by Hon.Chief Justice Prof. Lillian Tibatemwa-Ekirikubinza JSC (as single judge), on 1st July 2022, has re-emphasized that once a company is placed under receivership, it doesn’t lose its legal existence-another loss for Bank of Uganda (BoU).
This ruling comes out of failure by the two parties in this scandal [Crane Bank-Bank Of Uganda] and [Meera Investments-Sudhir Ruparelia] to agree the content of the orders of the decree ensuing from Civil Appeal No.07 of 2021.
You may want to know the background of this matter. Crane Bank (in receivership) filed an appeal in this Court on 1st August 2020. Before the appeal could be heard, the Appellant withdrew the appeal on 15th September 2020 something the Respondents objected to and prayed that the appeal be dismissed with costs under Rule 90 (4) of the Rules of Supreme Court.
Following a court hearing, on 11th February 2022, Court ruled that the appeal be dismissed with costs to the Respondents in the terms found by the lower courts. Furthermore, that the dismissal took effect on the date of endorsement of the Court’s ruling which was 11th February 2022.
The Respondents who were the successful parties in the application prepared a draft decree of the orders and submitted the same to the Appellant for approval. The decree was in the following terms:
1. The appeal is hereby Ä‘ismissed with costs in the terms found by the Court of Appeal. The costs shall be borne by Bank of Uganda.
2. The dismissal of the Appeal shall take effect from the date of this judgment, being 11th February 2022.
3. The Appellant’s receivership ended on 20th January 2018 and thereafter its management reverted to the shareholders.
The Appellant, agreed with the first two orders but raised objection to the third order and re-drafted the decree stating that the dismissal of the Appeal shall take effect from the date of endorsement of this judgment, being 11th February 2022.
Both parties however agreed that the Appellant’s receivership ended on 20th January 2018 and thereafter its management reverted to the the shareholders. In other words, the appellant did not contest the order that receivership ended on 20th January 2018.
Now, in her ruling, Chief Justice Tibatemwa on 1st July 2022 decreed in favor of Meera Investments Limited and Sudhir Ruparelia thus;
1. The appeal is hereby dismissed with costs in the terms found by the Court of Appeal. The costs shall be borne by Bank of Uganda.
2. The dismissal of the Appeal shall take effect from the date of this judgment, being 11th February 2022.
3. The Appellant’s receivership ended on 20th January 2018 and consequently its management reverted to the shareholders to that date. Remember that this is the highest court in the land and no further legal action is expected.
Now, all the above means that since BoU appeal was dismissed with costs on 11th February 2022 (date for commencement of payments due to Sudhir Ruparelia), any delays carries extra charges for Bank of Uganda.
