DFCU Bank is again battling lawsuit in which Crane Management Services Limited demands shs 2.9 billion rent arrears.
The development follows another court application filed by Meera Investments- a sister firm of Crane Management all owned by business mogul Sudhir Ruparelia seeking to reclaim 46 of its branches illegally acquired by DFCU Bank.
In the suit filed on February, 19, 2018, Crane management, which is owned by property mogul Sudhir Ruparelia, says that the bill accumulated after DFCU occupied 13 of its properties but later vacated some without paying a single shilling in terms of rent one year down the road.
Properties which DFCU failed to pay rent for include; Crane bank branch and Crane Bank ATM both found on Plot 9, Market Street, Crane Bank Branch, Plot 1-13, Jinja Road, Crane Bank branch (Plot 47, Republic Road, Mbale), Crane Bank ATM (Speke Hotel (1996) limited, Crane Bank ATM (Kampala Road), Apartment at Bombo road, Kiira Road, William Street, Market Street and Nkrumah Road.
Others are: Crane bank limited unit number 31 and 33 (Plot 28, Luwum Street), Crane Bank staff 8 apartments (Plot 1, Sinay Bin Amir street ), Crane Bank limited flats (Plot 22/24/26 ), Crane Bank limited staff flats (plot 22/24, 26, Crane Bank limited(plot 22/24/26) and Crane Bank staff flats (plot 22/24/26 all found on Kampala Road.)
Through Magna Advocates, Crane Management insists that by its conduct DFCU has assumed the rights and obligations under the tenancies in the aforementioned properties.
“The plaintiff [Crane Management] let out the various premises on the suit properties to Crane bank limited(in receivership ), which operated in the premises on the terms agreed between the parties,” the suit partly reads.
“When the defendant [DFCU] took over the assets and assumed the liabilities of Crane Bank, it took over occupation and use of the suit property.”
Crane management, subsequently, says that it’s major claim against DFCU is that the bank is in breach of contract, if not, then it faces a charge of unjust enrichment since it has not paid Shs2.9 billion as rental arrears.
By way of example, Crane management says that premises known as Plot 9, Market Street which was a Crane Bank branch, were let out to Crane Bank limited at a rent of $4,205.52 per month payable one year in advance.
The last payment, according to the organization, was covered for the period of September 30, 2016 and April 30, 2017.
That when the premises were vacated by DFCU, the outstanding rental arrears of seven months plus interest on arrears of $28, 730.11 and 3months notice period which, according to them, made a total sum of $ 66,579.31.
Another example cited by Crane Management, according to court documents, is that of Plot 9, Market Street, which was occupied by Crane Bank ATM, which was paying rent at $ 4, 205. 52 per month still also payable one year in advance.
Like in the previous case, the organization says that the last payment covered period of September 30, 2016 to April30, 2017. That the outstanding arrears that DFCU has to pay in regard to this property are $ 16, 822.08.