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23 Jun 2020

Commercial And Corporate [2020] UGCA 2050

Crane Bank [In Receivership] v Ruparelia & Another

Crane Bank [In Receivership] v Ruparelia & Another (Civil Appeal No. 252 of 2019) [2020] UGCA 2050 (23 June 2020)

Court: Court of Appeal of Uganda
Case number: Civil Appeal No. 252 of 2019
Judge: Owiny-Dollo, DCJ, Cheborion, JA, Musota, JA

The Court of Appeal held that Crane Bank Limited (in Receivership) lacked legal capacity to institute proceedings in its own name during receivership, as the Financial Institutions Act does not confer such power on a receiver. The Act expressly grants the power to sue to statutory managers and liquidators, but not to receivers. The statutory time span for receivership is limited to twelve months, after which the receiver's powers cease. The appellant, being majority-owned by non-citizens, is classified as a non-citizen under the Land Act and is prohibited from owning freehold or mailo land in…

Source excerpt

Receivership Powers
Corporate Capacity To Sue
Preliminary Objections
Locus Standi
Ownership Of Land By Non Citizens
Award Of Costs

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23 Jun 2020

Commercial And Corporate [2020] UGCA 2173

Crane Bank Limited [In Receivership] v Sudhir Ruparelia and Meera Investments Limited

Crane Bank Limited [In Receivership] v Sudhir Ruparelia and Meera Investments Limited (Civil Appeal No. 252 of 2019) [2020] UGCA 2173 (23 June 2020)

Court: Court of Appeal of Uganda
Case number: Civil Appeal No. 252 of 2019
Judge: Owiny-Dollo, DCJ, Cheborion-Barishaki, JA, Musota, JA

The Court of Appeal held that Crane Bank Limited, while under receivership, lacked legal capacity to institute proceedings because the Financial Institutions Act does not confer the power to sue on a receiver, unlike the statutory manager or liquidator. The statutory time span for receivership is limited to twelve months, after which receivership ceases by operation of law. The appellant, being majority-owned by non-citizens, is classified as a non-citizen under the Land Act and is prohibited from owning freehold or mailo land in Uganda. The preliminary objections raised by the respondents we…