The Commercial Court yesterday adjourned the hearing of a case in which Crane Management Services (CMS), sued Sebalu & Lule Advocates over conflict of interest.
Commercial court Registrar Festo Nsenga, said the presiding judge, Justice david Wangutusi was unwell. The case was pushed to March 1, 2019.
Sudhir Ruparelia, through CMS dragged to court for breach of various tenancy agreements in respect to 13 properties in Kampala and Mbale.
In the case (HCCS No.109 of 2018), CMS is demanding $385,728 and Shs 2.9 billion as rental arrears.
This is before interest, general damages, interest on general damages and costs of the suit.
Dfcu also faces other law suits by Meera Investments Ltd, the property development arm of the Ruparelia Group, for “fraudulently” and “illegally” transferring 42 properties belonging to Meera into dfcu’s name. The property company wants dfcu evicted out of the 42 properties, currently hosting various dfcu branches.
Sudhir argues that by virtue of Sebalu & Lule having been CMS’ previous lawyers, their being attorneys for dfcu is in violation of the advocate client relationship and the Advocates (Professional Conduct) Regulations and therefore injurious to CMS.
“In view of the advocate-client relationship between the applicant (Crane Management Services Ltd) and the 1st respondent (Sebalu & Lule advocates), the latter’s continued participation as defence counsel for the 2nd respondent (Dfcu bank) herein, which is the defendant in High Court Civil Suit (HCCS) No. 109/2018 against the applicant/plaintiff, is prejudicial to the applicant’s head suit,” the petition reads in part.
Speaking to reporters outside the court after the adjournment, Sudhir said they have all the evidence to proceed with the case.
Sebalu Lule & Advocates are also representing Bank of Uganda in a case which the central bank brought against Sudhir Ruparelia in his capacity as a former shareholder of the defunct Crane Bank, following High Court’s dismissal of two city law firms, MMAKS Advocates and Bowmans (AF Mpanga) for being in conflict of interest.