By Frank Kamuntu
Dfcu Bank last week scored a temporary win in its ongoing legal war with city tycoon Sudhir Ruparelia’s Crane Management Services (CMS), in a high-stakes rent dispute worth over Shs 8 billion. This follows a High Court decision that stayed an earlier enforcement order, which had directed Dfcu to pay the said amount in rent arrears for properties leased from CMS.
The properties are part of a portfolio previously associated with Crane Bank before its closure and controversial asset takeover by Dfcu in 2017. After the takeover, Dfcu continued to occupy several CMS-owned buildings countrywide, where its branches operate. CMS later dragged the bank to court, accusing it of rent default.
Ruparelia Group Chairman, Sudhir Ruparelia, reacted to the court’s latest decision with calm confidence.
“It’s good they acknowledge it’s a temporary ‘victory’. We shall battle at the Court of Appeal,” Sudhir asserted, making it clear the war is far from over.
Background of the Dispute
The battle began shortly after Dfcu’s acquisition of some assets and liabilities of Crane Bank. Dfcu reportedly took over several leases but allegedly failed to fulfill rental obligations for properties still owned by CMS. In 2022, CMS sued Dfcu, seeking recovery of unpaid rent, which by then had ballooned to over Shs 8 billion.
The High Court initially ruled in favor of CMS, granting an enforcement order that allowed CMS to extract the dues. However, Dfcu challenged this, filing an appeal and simultaneously requesting a stay of execution.
This week, the court granted the stay, effectively suspending CMS’s ability to enforce the payment—at least for now—pending the outcome of the appeal.
Legal and Commercial Implications
This landmark case continues to draw public and corporate attention, especially given its implications for post-bank-takeover asset management and commercial tenancy agreements.
Sudhir remains defiant, promising to fight to the end, while Dfcu has maintained silence, perhaps aware that the legal tides could turn yet again.
With both legal heavyweights bracing for the next phase at the Court of Appeal, this is a courtroom battle to watch.
