BoU-Sudhir mediation case resumes
Bank of Uganda (BoU) in Kampala
Kampala- The multi-billion case between Bank of Uganda (BoU) and businessman Sudhir Ruparelia resumes today for further mediation talks after close to five months in limbo.
Mid last year, the Central Bank sued Mr Ruparelia and his Meera Investments Company for allegedly fleecing Crane Bank, now in receivership, of Shs397b in fraudulent transactions.
However, trial judge David Wangutusi asked the parties to consider mediation to resolve the dispute amicably. He warned that should the matter go for a full hearing, the losing party would pay heavily.
The parties embraced the mediation process, with Principal Judge Yorokamu Bamwine selected as the head.
Mediation rules demand that out-of-court talks not go beyond two months and should the parties fail to reach consensus, the case file is reverted to court for a full hearing before a judge. The two-month period elapsed five months ago but the case had not been returned to court for allocation to a judge for the hearing.
The disruption
A source privy to the mediation talks said the process was disrupted by the dispute over lawyers representing BoU whom Mr Ruparelia contested and court disqualified from the case.
“The mediation talks were at one stage put on halt to sort out the issue of the lawyers, who were representing BoU but were accused of conflict of interest since they had represented Crane Bank and Mr Ruparelia before,” the source told Daily Monitor yesterday.
“Upon the ruling that was in favour of Mr Ruparelia, both parties opted for an effort to put on hold the mediation process so as to complete the filing of the pleadings. The out-of-court talks have just resumed and actually, the process resumes on Monday (today),” the source added.
The source said when the parties meet today, lawyers for both sides will first resolve whether to continue or call off the mediation given the ongoing forensic audit into BoU operations regarding the closure of commercial banks.
BACKGROUND
In December, Justice Wangutusi threw out BoU lawyers David Mpanga and Mr Timothy Masembe Kanyerezi from representing the Central Bank against Mr Ruparelia, saying they were once the latter’s lawyers and, therefore, could not handle proceedings against him.
