The Supreme Court of the United Kingdom has refused to halt the lawsuit initiated by Crane Bank Limited against Dfcu Bank and its shareholders, stating that the case should be heard on its merits. The ruling, delivered by three justices – David Lloyd Jones, George Andrew Midsomer Leggatt, and Andrew Stephen Burrows – was unanimous, dismissing Dfcu Bank’s appeal against the lower court’s decision on July 26, 2023.
Dfcu Bank and its shareholders had sought the UK court’s declaration that it lacked jurisdiction to adjudicate the lawsuit stemming from Dfcu’s purchase and takeover of Crane Bank. Following the rejection of this argument by the UK’s Court of Appeal, Dfcu Bank appealed to the Supreme Court, a move now rejected.
The Supreme Court’s ruling stated, “After consideration of the applications filed on behalf of the appellants seeking permission to appeal, the order made by the Court of Appeal on 26th July 2023 and of the notices of objection filed by the respondents, permission to appeal be refused because the applications do not raise an arguable point of law which the court should consider at this time.” Additionally, Dfcu Bank has been directed to cover the costs of the applications.
The implication of this decision is that the UK High Court can proceed with the original case, wherein Crane Bank alleges fraudulent actions and a conspiracy in the acquisition of its assets from the Bank of Uganda.
Crane Bank Limited, once one of Uganda’s largest commercial banks, faced closure in 2016 as the Bank of Uganda, citing undercapitalization and risk to depositors, took over its management and subsequently sold off some assets and liabilities to Dfcu Bank. After numerous legal battles in Ugandan courts against the Central Bank, the dispute has now shifted to London courts, targeting Dfcu directors and major shareholders.
This development marks a new chapter in the protracted legal saga, indicating the international scope and complexity of the allegations surrounding the acquisition of Crane Bank’s assets.
