In the Supreme Court ruling delivered by Hon. Chief Justice Prof. Lillian Tibatemwa-Ekirikubinza JSC (as a single judge), on 1st July 2022, re-emphasized that once a company is placed under receivership, it doesn’t lose its legal existence-another loss for Bank of Uganda (BoU).
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, 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 đismissed with costs in the terms found by the Court of Appeal. The costs shall be borne by the 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 an 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 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 favour 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 (the date for commencement of payments due to Sudhir Ruparelia), any delays carry extra charges for Bank of Uganda.