Crane Bank Limited & Ors v DFCU Bank Limited & Ors

Crane Bank Limited & Ors v DFCU Bank Limited & Ors

There are serious issues to be tried as to whether the Commercial Activity Exception and/or the Public Policy Exception to the foreign act of state rule apply to the appellants’ claims, and these issues are not suitable for summary determination. The appeal is allowed to the extent that the jurisdiction challenge should not have been summarily upheld.

Parties
Appellant/claimant: Crane Bank Limited; Appellant/claimant: Sudhir Ruparelia; Appellant/claimant: Jyotsna Ruparelia; Appellant/claimant: Meera Ruparelia; Appellant/claimant: Rajiv Ruparelia; Appellant/claimant: Tom Mugenga; Appellant/claimant: Sheena Ruparelia; Respondent/defendant: DFCU Bank Limited; Respondent/defendant: DFCU Limited; Respondent/defendant: Jimmy Mugerwa; Respondent/defendant: Juma Kisaame; Respondent/defendant: William Sekabembe; Respondent/defendant: CDC Group PLC; Respondent/defendant: Norfinance AS; Respondent/defendant: Rabo Partnerships B.V.; Respondent/defendant: Arise BV; Respondent/defendant: Stephen Caley; Respondent/defendant: Michael Alan Turner; Respondent/defendant: Albert Jonkergouw; Respondent/defendant: Willem Cramer; Defendant: Ola Rinnan; Defendant: Deepak Malik
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Civil Appeal / Appeal From High Court Decision on Jurisdiction (foreign Act of State Rule)
Outcome
Appeal allowed in part; jurisdiction challenge dismissed to the extent of serious issues to be tried on Commercial Activity and Public Policy Exceptions; otherwise dismissed.
Legal Topics
Foreign Act of State Doctrine, Jurisdiction, Public Policy Exception, Commercial Activity Exception, Bribery and Corruption, Human Rights (article 6 Echr)
Private International Law Commercial Law Banking Law Foreign Act of State Doctrine Jurisdiction Public Policy Exception Commercial Activity Exception Bribery and Corruption +1 more

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Parties

Crane Bank Limited

Appellant/claimant

Sudhir Ruparelia

Appellant/claimant

Jyotsna Ruparelia

Appellant/claimant

Meera Ruparelia

Appellant/claimant

Rajiv Ruparelia

Appellant/claimant

Tom Mugenga

Appellant/claimant

Sheena Ruparelia

Appellant/claimant

DFCU Bank Limited

Respondent/defendant

DFCU Limited

Respondent/defendant

Jimmy Mugerwa

Respondent/defendant

Juma Kisaame

Respondent/defendant

William Sekabembe

Respondent/defendant

CDC Group PLC

Respondent/defendant

Norfinance AS

Respondent/defendant

Rabo Partnerships B.V.

Respondent/defendant

Arise BV

Respondent/defendant

Stephen Caley

Respondent/defendant

Michael Alan Turner

Respondent/defendant

Albert Jonkergouw

Respondent/defendant

Willem Cramer

Respondent/defendant

Ola Rinnan

Defendant

Deepak Malik

Defendant

Procedural Posture

Civil Appeal / Appeal From High Court Decision on Jurisdiction (foreign Act of State Rule)

Legal Issues

  1. 1 Whether the foreign act of state rule bars the claims against the respondents
  2. 2 Whether the Commercial Activity Exception applies to the sale of CBL's assets
  3. 3 Whether the Public Policy Exception applies due to alleged corruption

Ratio Decidendi

There are serious issues to be tried as to whether the Commercial Activity Exception and/or the Public Policy Exception to the foreign act of state rule apply to the appellants’ claims, and these issues are not suitable for summary determination. The appeal is allowed to the extent that the jurisdiction challenge should not have been summarily upheld.

Court Disposition

Appeal allowed in part; jurisdiction challenge dismissed to the extent of serious issues to be tried on Commercial Activity and Public Policy Exceptions; otherwise dismissed.

Orders

  • The appeal is allowed on the grounds of the Commercial Activity Exception and Public Policy Exception.
  • The jurisdiction challenge is dismissed to the extent that there are serious issues to be tried on those exceptions.