Tycoon Sudhir Ruparelia’s Meera Investments Limited has asked court to compel dfcu Bank to pay Shs32b in rent arrears for breach of the tenancy agreement on Plot 38 and 40A Kampala Road.
Plot 38 served as the headquarters of the defunct Crane Bank that dfcu took over in 2017 and inherited its rental agreement.
Commercial Court’s Justice Stephen Mubiru is presiding over the case.
The agreement was entered into between Crane Bank and Meera Investments in 2014 and Sudhir’s lawyers argue it was inherited by dfcu Bank after it took over Crane Bank that used to belong to the tycoon until Bank of Uganda put it under receivership in 2016.
The tycoon has since won the case where BoU accused him of syphoning money out of the bank. However, along with Crane Bank, BoU had sold and handed over bank premises that used to belong to Meera Investments to dfcu.
BoU claimed that Sudhir has transferred the properties from Crane Bank to Meera before leasing them to Crane Bank again. Sudhir was again victorious in the court battle for his premises and dfcu rescinded its interest in purchasing the properties and returned the titles to Bou.
dfcu vacated the premises in July 2020 but Sudhir told court that the agreement was still running and is supposed to expire in March 2024 as there was no clause for termination of the contract.
“The agreement was a fixed tenancy for 10 years, which binds the successor dfcu,” Sudhir says.
According to court documents, Crane Bank (in receivership) last made payments for the period covering April 1, 2016 to March 31, 2017 for the said premises. As a result, Meera demands arrears for 80 months.
Meera says non-payment of the rent has not only caused it losses, but deprived it of use of its money and interest, caused it more suffering and grave inconveniences and adversely affected its businesses, for which it claims general damages.
Court heard that dfcu entered into an agreement with Crane Management Services Limited, an authorised letting agent of Meera and undertook to pay Shs2b in restoration costs for the premises and arrears of utility bills amongst other properties owned by Meera.