Crane Bank and its shareholders are on cloud nine following a Wednesday ruling where the Court of Appeal from the High Court of Justice, Business and Property Courts in England, overturned the lower court’s decision, which had exonerated DFCU bank and its shareholders from accusations of fraudulently taking over Crane Bank.
In a statement inked by Crane Bank, the shareholders commended the Court for confirming their claims that will see DFCU vomit billions totaling about Ugx795B.
“Crane Bank and its shareholders are delighted with the judgment of the Court of Appeal, which vindicates their position. The Court of Appeal has confirmed that their claim for hundreds of millions of US Dollars against DFCU Bank, its executive directors, non-executive directors and shareholders can proceed to be heard by the English courts,” partially states DFCU statement.
The appellants assert that from 2016 senior Ugandan government officials and officials of the Bank of Uganda engaged in a corrupt scheme to take control of CBL, making improper use of statutory and regulatory powers to do so, and then selling assets for the benefit of the parties to the scheme.
“The Court of Appeal found that there are serious issues to be tried and the claim falls outside the foreign act of state doctrine, relying on the commercial activity exception and the argument that all the executive acts in question engage the English public policy of combating and not giving legal protection to bribery and corruption,” the Crane Bank statement adds.
Crane Bank’s shareholders were elated that the London Court of Appeal’s ruling means that DFCU and the other Defendants cannot rely on the foreign act of state doctrine to evade liability.
“Crane Bank and its shareholders will continue to vigorously pursue their claim as part of a fair legal process before the English courts,” further noted Crane Bank.
This week’s UK judgment followed an appeal by Crane Bank Limited, Sudhir Ruparelia, Jyotsna Ruparelia, Meera Rupareliac, Rajiv Ruparelia, Tom Mugenga, and Sheena Ruparelia against DFCU bank and other shareholders, regarding a previous decision by the High court which stated that the English courts have no authority to hear the claim brought by Crane bank and its shareholders.