A statement that no legal leases exist on the properties. As a result, the aforementioned leases are deemed null and void for violation and illegality. A determination that the first defendant's occupancy and continuous use of the suit properties constitutes trespass.
That was the verdict of Justice Tadeo Asiimwe on October 24, who ordered DFCU Bank to evacuate 48 leasehold properties owned by the bankrupt Crane Bank Limited. The court also fined Dfcu Bank UGX2.4 billion in penalties plus 8% interest per year for trespassing on Crane Bank's properties.
In the verdict, Justice Tadeo Asiimwe also ordered the commissioner of property registration to invalidate 48 leases, lease amendments, and extensions that had been recorded as encumbrances on Crane Bank's mailo and freehold titles.
The second defendant (commissioner land registration) is now directed to revoke the first defendant's registration as the holder of the leasehold rights in all of the suit properties."
Asiimwe also imposed a permanent injunction prohibiting DFCU, its agents, and employees from entering the Crane Bank premises.
A declaration that the plaintiff is entitled to unoccupied possession of the suit properties within three months of the judgment date as the registered owner of the freehold/mailo interest."
Because Crane Bank is no longer in existence, the court ordered that DFCU pay the litigation's costs to Meera Investment Limited, the mother company of Crane Bank Limited, which brought the complaint on behalf of its child business, Crane Bank.
Meera Investment Limited was declared the registered owner of the freehold/mailo rights in the properties by the court.
The court ordered DFCU to evacuate the property within three months.
Crane Bank Limited was closed down by the central bank in October 2016, saying it was undercapitalized after failing to comply with a capital call on July 1, and part of its assets were sold to DFCU Bank.
There were assets that remained in the Bank of Uganda's possession and were meant to be liquidated throughout the liquidation procedure. The BoU then put CBL into receivership on January 12, 2017, in accordance with Section 99 (1,2) of the Financial Institutions Act 2004.
However, after four years of consideration, the Supreme Court concluded that Crane Bank should be returned to Sudhir and ordered BoU to pay costs.
Among the 48 properties are those in Kampala, Kasese, Masaka, Samia Bugwe, Busia, Masindi, Gulu, Malaba, Entebbe, Kabale, Hoima, Soroti, Mukono, Ibanda, Arua, and Fort Portal.
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