Supreme Court Orders BoU To Pay Shs 1 Billion To Sudhir Ruparelia In Legal Costs

The Supreme Court of Uganda has ordered the Bank of Uganda to pay businessman Dr. Sudhir Ruparelia and his company, Meera Investments Limited, a total of Shs 1 billion in legal costs, marking another milestone in the protracted Crane Bank saga.

The ruling, delivered on October 17 by a panel of three justices led by Chief Justice Alfonse Owiny Dollo alongside Justices Elizabeth Musoke and Stephen Musota, follows years of legal wrangling over the bank’s controversial receivership and the subsequent lawsuits against Ruparelia and his companies.

The judgment clarifies that Dr. Ruparelia and Meera Investments, though represented by the same lawyers, are separate legal entities, each entitled to Shs 500 million. Chief Justice Dollo explained that the law permits multiple parties to file separate bills of costs, while any duplicated or unnecessary expenses can be rejected to ensure fairness and proper procedure. “The courts have effectively lifted the corporate veil on Crane Bank, exposing the Bank of Uganda as the real party responsible for initiating and financing the litigation,” he stated.

The legal battle began in 2016 when Crane Bank was placed under receivership by the central bank over alleged financial irregularities. A year later, Crane Bank, acting through the receivership, sued Ruparelia and Meera Investments for acquiring 48 bank properties without payment. Ruparelia and his company argued that Crane Bank, under receivership, had no legal capacity to sue, a position that was upheld by the High Court in 2018 and later affirmed by the Court of Appeal and Supreme Court.

After this victory, Ruparelia and Meera filed claims for compensation, initially seeking over Shs 54 billion each for years of legal work. The Supreme Court Registrar awarded Shs 45.8 billion, but BoU successfully appealed to reduce the figure to Shs 500 million. Dissatisfied, Ruparelia and Meera challenged this reduction, resulting in the latest ruling confirming the Shs 1 billion payout.

Chief Justice Dollo emphasized that instruction fees must be calculated independently of the original monetary claims, highlighting that while lawyers deserve fair remuneration, court costs must remain reasonable to preserve access to justice. Justice Musoke concurred, noting the importance of fairness, while Justice Musota partially dissented, suggesting that a slightly higher award might have been justified given the complexity of the case.

The justices also clarified that costs for drawings, attendances, and perusals are included under instruction fees and should not be billed separately, and interlocutory application costs remain fixed at Shs 5 million each. This ruling reinforces the principle that BoU, not Crane Bank, is liable for the litigation costs.

Crane Bank, once one of Uganda’s largest financial institutions, was controversially closed in October 2016 after the central bank cited undercapitalization. Investigations and court findings later revealed irregularities in the closure process. The Auditor General’s 2018 report to Parliament highlighted that BoU failed to follow proper procedures and could not account for Shs 478 billion claimed to have been spent during the receivership.

Owned by Dr. Sudhir Ruparelia through Meera Investments, Crane Bank had expanded to over 46 branches and was highly profitable. Its sudden closure and sale to DFCU Bank without open bidding or shareholder consultation drew widespread criticism. The judiciary has repeatedly found that BoU overstepped its authority, and the latest Supreme Court ruling now definitively affirms that Ruparelia and Meera were unlawfully targeted.

Beyond financial restitution, the decision underscores accountability in regulatory actions, sending a clear message that even powerful institutions must operate within the law.

For Dr. Ruparelia, the ruling represents a vindication of his long-standing claim that Crane Bank’s closure was politically influenced and economically detrimental. It also cements the judiciary’s role in safeguarding fairness and the rule of law in Uganda’s banking sector.