Supreme Court Orders BoU To Pay Sudhir Ruparelia Ugx1 Billion In Legal Costs

By Frank Kamuntu

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

A panel of three justices led by Chief Justice Alfonse Owiny Dollo, together with Justices Elizabeth Musoke and Stephen Musota, delivered the ruling on October 17, 2025. The decision came after Sudhir and Meera appealed an earlier ruling that had drastically reduced their legal fees from Shs 45.8 billion to Shs 500 million.

In the new judgment, the Supreme Court upheld most of Justice Mike Chibita’s earlier decision but clarified that Sudhir Ruparelia and Meera Investments are separate legal entities, each entitled to Shs 500 million. This brings the total payout by the Bank of Uganda to Shs 1 billion.

Chief Justice Dollo explained that the law allows multiple parties represented by the same lawyer to file separate bills of costs. He added that any duplicated or unnecessary expenses can be rejected by the taxing officer, ensuring fairness while maintaining proper legal procedure.

The ruling is the latest chapter in a complex legal battle that began in 2016, when the Bank of Uganda placed Crane Bank under receivership over alleged financial irregularities. A year later, the central bank, acting through Crane Bank (in receivership), sued Sudhir and Meera Investments for allegedly misappropriating funds and acquiring 48 bank properties without payment.

Sudhir and Meera argued that Crane Bank (in receivership) had no legal capacity to sue, a position upheld by the High Court in 2018. The Court of Appeal and Supreme Court later affirmed that decision, ruling that once a bank is under receivership, it ceases to exist as a legal entity capable of initiating new suits.

After their victory, Sudhir and Meera filed for compensation, claiming over Shs 54 billion each for years of legal work and appearances. The Registrar of the Supreme Court initially awarded Shs 45.8 billion before BoU successfully appealed to reduce the figure to Shs 500 million. Dissatisfied, Sudhir and Meera challenged the reduction, leading to the current Supreme Court decision.

In his ruling, Chief Justice Dollo clarified that the case before the Supreme Court was based on a question of law, not on the Shs 458 billion claim referenced in earlier proceedings. He ruled that instruction fees could not be calculated from that figure since the appeal did not involve a money claim.

He further noted that while lawyers deserve fair remuneration, court fees must remain reasonable to ensure equal access to justice. Justice Musoke agreed with his reasoning, while Justice Musota partially dissented, arguing that the applicants deserved a slightly higher award given the case’s length and complexity.

The justices also ruled that costs for drawings, attendances, and perusals were already covered under instruction fees and should not be charged separately. They maintained that costs for interlocutory applications remain at Shs 5 million per application instead of the Shs 50 million previously sought.

In conclusion, the Supreme Court directed the Bank of Uganda to pay Shs 500 million to Dr. Sudhir Ruparelia and another Shs 500 million to Meera Investments Limited. The court reaffirmed that BoU, not Crane Bank, must shoulder the costs since it was the real party behind the lawsuit.

Chief Justice Dollo emphasized that the courts had effectively “lifted the corporate veil” on Crane Bank, exposing BoU as the institution responsible for initiating and financing the litigation. This ruling cements the Ruparelia Group’s legal victory and closes another chapter in Uganda’s most high-profile banking dispute.

Crane Bank, once one of Uganda’s largest and most successful financial institutions, was controversially closed by the Bank of Uganda in October 2016, which claimed the bank was “significantly undercapitalized.” However, subsequent investigations and court findings revealed that the closure process was mishandled.

The Auditor General’s 2018 report to Parliament found that the Bank of Uganda failed to follow proper procedures when taking over and selling Crane Bank. The report also noted that BoU could not account for Shs 478 billion it claimed to have spent during the receivership process.

Owned by Dr. Sudhir Ruparelia through Meera Investments Limited, Crane Bank had grown into one of the most profitable local banks, operating over 46 branches across the country. Its sudden takeover and subsequent sale to DFCU Bank were later criticized as opaque and irregular. The transaction, conducted without open bidding, was concluded before shareholders were given a fair hearing.

Following a series of court decisions, Uganda’s judiciary has consistently found that the Bank of Uganda overstepped its legal authority in handling the Crane Bank closure. The rulings have effectively vindicated Sudhir and Meera, whose position from the start was that the takeover was unlawful, politically influenced, and economically harmful.

The latest Supreme Court ruling now stands as a definitive confirmation that the Bank of Uganda acted outside the law when it closed Crane Bank and pursued its owners in court. It also reinforces the principle of accountability in regulatory actions, signaling that even powerful institutions must operate within the limits of the law.