A temporary victory emerged for Dfcu bank after a High court judge halted a massive financial garnishee order. The court stepped in to prevent Crane Management Services from seizing funds from the bank's account at the Bank of Uganda. Justice Steven Mubiru recognized the potentially devastating impact such a move could have on the bank's operations.
The legal battle stems from a 2013 property rental agreement between Dfcu and Meera Investments Ltd, a company connected to businessman Sudhir Ruparelia. Following the controversial shutdown of Crane Bank Limited and its asset transfer to Dfcu, a dispute erupted over unpaid rent. Crane Management sought nearly $385,728 and almost three billion shillings in damages.
Earlier in 2024, the High court sided with Crane Management, mandating Dfcu pay the full amount plus an additional four hundred million shillings with ten percent interest. The total bill ballooned beyond eight billion shillings. Dfcu pushed back by appealing the judgment and requesting a halt to the execution.
Justice Mubiru found merit in Dfcu's arguments. He pointed out potential legal uncertainties that could overturn the initial ruling. The judge also raised concerns about Crane Management's ability to repay funds if the appeal succeeds. The case will now await resolution through the Court of Appeal, leaving both parties in a temporary financial standoff.
The legal battle stems from a 2013 property rental agreement between Dfcu and Meera Investments Ltd, a company connected to businessman Sudhir Ruparelia. Following the controversial shutdown of Crane Bank Limited and its asset transfer to Dfcu, a dispute erupted over unpaid rent. Crane Management sought nearly $385,728 and almost three billion shillings in damages.
Earlier in 2024, the High court sided with Crane Management, mandating Dfcu pay the full amount plus an additional four hundred million shillings with ten percent interest. The total bill ballooned beyond eight billion shillings. Dfcu pushed back by appealing the judgment and requesting a halt to the execution.
Justice Mubiru found merit in Dfcu's arguments. He pointed out potential legal uncertainties that could overturn the initial ruling. The judge also raised concerns about Crane Management's ability to repay funds if the appeal succeeds. The case will now await resolution through the Court of Appeal, leaving both parties in a temporary financial standoff.
