By KT Reporter
The High Court in Kampala has given DFCU Bank a reprieve by staying the execution of an 8 billion Shillings garnishee order by Crane Management Services, a company owned by city businessman Sudhir Ruparelia.
Justice Steven Mubiru of the Commercial division of the High Court said there was real danger that if he didn’t stay the execution, DFCU’s account held at the Bank of Uganda was going to be attached. “The applicant has thus demonstrated a reasonable basis to support the belief that although execution will not affect the merits of the grounds and arguments proposed to be raised on appeal, there is a real prospect that it will not be possiblefor the Court of Appeal by its orders to restore the status quo if the applicant succeeds in its appeal. Although the Court of Appeal would ordinarily order the restoration of the status quo ante by directing the respondent to refund money recovered in execution of the decree, the difficulty facing the applicant is that the extent of the powers granted to the respondent by its principal and the extent to which the principal is bound to bear the liabilities of the respondent, is unknown and may not be revealed on appeal,” the judge ruled.
Crane Management Services is the Manager and letting agent of Meera Investments Limited, which legally owns Sudhir’s multiple properties. After the closure of Crane Bank Limited and its accounts transferred to DFCU Bank, Crane Management Service entered into a five-year tenancy agreement with DFCU Bank starting in October 2013. However, according to court records, DFCU defaulted on its obligations, which allowed Crane Management Services to sue them for the recovery of US$ $ 385,728 and 2.998 billion Shillings.
In 2024, the High Court allowed Crane Management Services’ application and thus ordered DFCU Bank to pay the outstanding debt and also 400 million Shillings with a 10 percent interest in damages. It’s this money that has now risen to 8.069 billion Shillings that Crane Management Services wanted to recover by attaching the DFCU Bank account held at the Bank of Uganda.
In his ruling, Justice Mubiru said there was substantive evidence to suggest that the court of appeal might overturn the decision of the high court. “Having perused the judgment, the pleadings and the proceedings leading to the judgment, I have formed the opinion that there is a reasonable basis in law and equity to support the grounds raised and that they can be supported by good faith argument. It is therefore possible that the Court of Appeal could reasonably conclude differently from that of the trial court…All in all, on account of the nature of issues to be canvased on appeal vis-a-vis the legal status of the respondent and its doubtful financial means, the applicant has established a reasonable basis for sustaining the belief that there is a real prospect that the appeal may be rendered nugatory,” the judge held-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
