The English High Court recently made a significant ruling in the ongoing case between DFCU Bank and Crane Bank Limited (CBL), ordering Sudhir Ruparelia, a shareholder of CBL, to provide a personal undertaking and written guarantee to DFCU Bank.
This undertaking ensures that Ruparelia will cover the costs incurred if DFCU Bank successfully defends the claim.
The development comes after DFCU Bank sought security for its costs, citing CBL’s insufficient assets to cover them. Instead of ordering CBL to provide security, the High Court shifted the responsibility to Sudhir Ruparelia. Notably, this ruling does not constitute a decision on the merits of the claim.
DFCU Bank maintains that the claim is without merit and will continue to vigorously defend itself. In a separate but related matter, Sudhir Ruparelia and other CBL stakeholders secured a major victory against DFCU Bank in a UK court. The court ruled that there are serious issues to be tried regarding the transaction where the Bank of Uganda allegedly sold CBL assets to DFCU Bank through corrupt means.
DFCU Bank remains strong, capitalised well above the Central Bank requirements for commercial banks, and committed to delivering value to its shareholders and customers while upholding ethical standards of global best practice.
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