NCB TakeOver: Court Dismisses With Costs Nzeyi’s Case Against Sudhir, BoU

Court has once again dismissed the suit in which one of the former owners of the liquidated National Bank of Commerce (NBC) sued Bank of Uganda, Crane Bank, and former owner Mr Sudhir Ruparelia as well as Kenyan tycoon Rasiklal Chhotal Kantaria.

Mr Amos Nzeyi ran to court to challenge the takeover of NBC by BoU in 2012 which was liquidated to Crane Bank (now also in liquidation), which he says was an illegal takeover of his bank.

However, on Wednesday the court dismissed the suit with costs after Nzeyi failed to prove his allegations.

In the suit Mr Nzeyi asked the court to declare that BoU’s takeover of NBC and the subsequent sale of its assets to Crane bank on September 27, 2012, was illegal and in bad faith.

He said the liquidation of the bank was in breach of the Financial Institutions Act 2004 and should be declared null and void. He also wanted the court to hold BoU liable for its alleged failure to supervise the banking sector.

NBC which was licensed in 2004 was closed in 2012 for insolvency, and handed over to Crane Bank. Both banks no longer exist.

A parliamentary probe in the 10th parliament pointed to a number of management flows in the Bank of Uganda.

Mr Sudhir Ruparelia has himself dragged Bank of Uganda to court for illegal closure of his Crane Bank and several bodies have since agreed with him including the Auditor General, Parliament, and the High Court’s Commercial Court.

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