NBC proprietors want court to delay liquidation process

The Central bank, through its attorney, asked the court to dismiss the application, saying the application has been overtaken by events because the first stay was issued after sale.

The proprietors of National Bank of Commerce (NBC) have asked court to delay the implementation of the winding up of their bank until a pending petition is determined.

In September last year, Mr Humphrey Nzeyi, one of the directors of NBC, petitioned the Constitutional Court, asking it to order the central bank and Crane Bank to pay Shs500 billion in damages to the NBC directors and shareholders over violating a lawful court order.

The bank, through its attorneys, John Mary Mugisha and Severino Twinobusigye on Friday asked the court to extend the September 28, 2012 stay of the liquidation of NBC Bank and the transfer of part of its assets to Crane Bank.

“It is equitable and in the best of justice that the application is granted. It is not true that the winding up was implemented because there are several steps in the winding up and takeover process which are still pending,” Mr Mugisha said before Justice Remmy Kasule.

According to Mr Mugisha, the pending petition against Bank of Uganda and AG is seeking for declarations and orders that the manner and conduct of the Central Bank in taking over NBC Uganda Limited was in contravention of the law.

However, the central bank, through its attorney, asked the court to dismiss the application, saying the application has been overtaken by events because the first stay was issued after sale.
Justice Kasule has set February 15 for the ruling on whether or not to extend the stay.

ekasozi@ug.nationmedia.com