Business magnate Dr. Sudhir Ruparelia has announced plans to appeal a recent decision by the High Court that granted a temporary stay in the enforcement of UGX 8 billion in rent arrears claimed by his real estate firm, Crane Management Services (CMS), from Dfcu Bank.
The dispute centers around rent accumulated from several commercial properties owned by CMS and occupied by Dfcu Bank following its acquisition of Crane Bank assets in 2017.
CMS contends that Dfcu failed to meet its rental obligations for the properties, leading to a legal battle that has now escalated to the appellate level.
Last week, the High Court issued a stay of execution on a prior enforcement order that had directed DFCU to pay the outstanding arrears. The stay effectively delays CMS’s ability to recover the money until Dfcu’s appeal is heard and determined by the Court of Appeal.
In response to the development, Dr. Ruparelia, the Chairman of Ruparelia Group, expressed his resolve to pursue justice through the appellate court, stating that the recent ruling is only a temporary setback.
“It’s good they acknowledge it’s a temporary ‘victory.’ We shall battle at the Court of Appeal,” he said.
The case has drawn considerable attention from legal and financial circles given its implications on post-acquisition liabilities, especially in Uganda’s banking and real estate sectors.
The properties in dispute were part of Crane Bank’s portfolio before its takeover by Dfcu Bank, which was facilitated by the Bank of Uganda following regulatory concerns.
CMS maintains that Dfcu’s continued use of the properties without meeting the agreed rent obligations constitutes a breach of contract and that recovery of the UGX 8 billion is legally justified.
The initial court ruling favoured CMS and ordered payment, but Dfcu swiftly sought a stay of execution, which was granted pending appeal.
Legal observers suggest the appeal could set a significant precedent on matters involving commercial leases, asset transfers, and liability continuity after acquisitions.
With both parties expected to present extensive legal arguments, the case is poised to become a defining moment in Uganda’s corporate legal landscape.
While Dfcu Bank has yet to issue an official statement, Dr. Ruparelia remains confident that the Court of Appeal will uphold what he terms a rightful claim.
“We are ready for the Court of Appeal. Justice must prevail,” he remarked.
The business community, along with legal analysts, will be closely following proceedings as the matter unfolds in the appellate court.
The outcome is expected to have long-term ramifications for how commercial property rights are enforced in the context of institutional takeovers in Uganda.
