Meera Investment has dragged DFCU bank to court and among the issues Meera Investment wants court to decide on, is the issue of continued occupying of its branches by DFCU without paying rent that has accumulated to over US $ 8.6 million.
According to court documents obtained by this website, DFCU without the consent of Meere Investment, the owners of 46 branches that used to house Crane bank transferred the ownership of these branches into its names with the help of Commissioner land registration in the Ministry of Lands.
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CASE 1 – BRANCHES – 2ND DEFENDANTS WRITTEN STATEMENT
CASE 1 – BRANCHES – 1ST DEFENDANTS WRITTEN STATEMENT OF DEFENCE (1)
CASE 1 – BRANCHES – PLAINT
CASE 1 – BRANCHES – 2ND DEFENDANTS WRITTEN STATEMENT (1)
CASE 1 – BRANCHES – PLAINT (1)
CASE 1 – BRANCHES – REPLY TO 1ST DEFENDANTS WRITTEN STATEMENT (1)
CASE 1 – BRANCHES – 2ND DEFENDANTS WRITTEN STATEMENT (2)
Therefore, Meere Investment has dragged the two parties to Commercial Court seeking to among others be paid the said money from the time DFCU took over but also revert back the branches to the rightful owner (Meera Investment).
In addition to the 46 branches, another subject matter of the suit is a tenancy in respect of properties comprised in and known as plot 38 Kampala Road, covering the basement ground, 1st, 2nd, 3rd and 7th floors and all of plot 40A Kampala Road.
“The plaintiff’s claim against the defendant is for breach of contract whereof the plaintiff claims from the defendant, a sum of US $6, 144, 079 in respect of plot 38 Kampala Road and US $2,516,383,20 in respect of plot 40A Kampala Road, all totaling to a sum of US $ 8, 660,462,34. Interest on the sum aforementioned at the prevailing commercial rate from the date the said sum became due until payment in full, general damages, interest on general damages, and costs of the suit , all arising from various breaches committed by the defendant” reads the case.
Meera Investments contend that even Crane bank that used to occupy all the branches and plots 38 and 40A Kampala Roads used to pay rent and therefore, there isn’t anything that hinders DFCU from paying the rent since DFCU currently utilizes the branches and plots the Kampala Road space.
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Meera in its law suit, avers that at the time when Bank of Uganda (BoU) took over the management of then Crane Bank, now under receivership, in October 2016 before its eventual sell to DFCU, was the lessee of the suit properties and paying US $6,000 every beginning of the year.
Meera adds that by transferring the same properties to DFCU Bank without their prior written consent, is illegal.
In exercise of its powers, Bank of Uganda in January transferred the liabilities (including deposits) of Crane Bank to DFCU Bank.
Bank of Uganda Governor Emmanuel Mutebile said in a statement that the central bank also conveyed Crane Bank’s assets to DFCU bank.
Addressing journalists in Kampala, Mr Mutebile explained that all customers and depositors of Crane Bank were to have their accounts operated by DFCU Bank through its wide branch network.