He said in his letter to DFCU that he had canceled the title leases in compliance with the October court judgment. In a ruling issued on October 24, 2023, the High Court Land Division ordered DFCU Bank to evacuate the 48 leasehold properties belonging to the defunct Crane Bank. In addition, Justice Tadeo Asiimwe directed the Commissioner of Land Registration to annul 48 suit leases, lease revisions, and lease extensions that had been recorded as encumbrances on Crane Bank Limited's mailo and freehold titles.
Mugaino said that he withdrew all title certificates in compliance with the court's decision and that DFCU Bank must return them to the owner.
"You will recall that a judgment was entered in favor of the plaintiff, Meera Investments Limited, against DFCU Bank Limited and the Office of the Commissioner Land Registration in the above-mentioned suit." Orders were issued directing the office to rectify the record in accordance with the terms of the decree, including the revocation of leasehold certificates of title. "For your convenience, a copy of the decree is enclosed," he stated in the letter.
"Given the self-executing nature of the Court's orders and to avoid possible contempt proceedings, this office proceeded and implemented the Court's decree to the extent of the orders made for its implementation by rectifying the register and canceling the leases as encumbrances on the Mailo and Freehold certificates of title registered in the names of Meera Investments Limited, and further by canceling all entries on the register and white pamphlets."
As a result, the purpose of this letter is to urge that, now that the leasehold titles have been canceled, the 48 duplicate certificates of title in your possession be returned to our office to avoid any possible misuse. "Please respond within seven days of receiving this email," he requested.
For trespassing on the bank's premises, the court also ordered DFCU Bank to pay former Crane Bank Shs2.4 billion in penalties plus 8% interest each year.
This action was launched by the plaintiff against the defendants, DFCU Bank and the Commissioner of Land Registration, for the allegedly illegal and fraudulent sale and ownership of 48 leasehold properties. Mera Investments' claims were based on its status as the registered owner and lessor of 48 Mailo and freehold titles, which gave rise to the contested lease agreements.
The dispute centered on property ownership, as well as the following transfer of titles and lease occupancy in favor of DFCU Bank. DFCU Bank, on the other hand, contested the claims, alleging that they had properly secured their ownership in the 48 leasehold properties via a purchase from the Bank of Uganda as a receiver of Crane Bank Limited.