High Court in landmark ruling

Staff Writer

THE High Court has ruled a commercial bank should reimburse its client money deposited in a foreign currency account (FCA), which was later raided by the Reserve Bank as it tried to prop up government during the hyperinflation era.High Court judge Justice Francis Bere made the landmark ruling  (judgment HH-310-11), likely to have serious ramifications across the banking sector, when he directed Standard Chartered Bank to repay China Shougang International an undisclosed amount which the company deposited with the bank. China Shougang is a trade and engineering company.

In its defence, StanChart had argued the company should claim its money from the RBZ, which had liquidated FCAs, but the court ruled against it.

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