New judge directs on Sudhir, law firm case

Interaction. Mr Sudhir Ruparelia (Centre) and his son Rajiv Ruparelia (left) talk to their lawyer Joseph Kyazze at the Commercial Court in Kampala yesterday. PHOTO BY ALEX ESAGALA

What you need to know:

  • Mr Ruparelia claims that there exists an ‘advocate-client’ relationship with Sebalu & Lule Advocates yet the same law firm is representing an opposing party (dfcu Bank) against them.

Kampala. Justice Paul Gadenya yesterday directed on the hearing schedule of the case in which property mogul Sudhir Ruparelia sued Sebalu and Lule Advocates, seeking to stop them from representing dfcu Bank, citing alleged conflict of interest.

This was after the judge in the case met the warring parties for the very first time ever since he took over the matter about a fortnight ago to agree on housekeeping issues. He set April 3 to fully hear the matter.

“I asked that this matter be mentioned today because it’s my first time to handle it. I want us to agree on the hearing schedules and any witnesses to be cross-examined, if any. That is the focus of our meeting,” he said.

Subsequently, each side through its lawyers, told Justice Gadenya that they do not intend to cross-examine any witnesses and that they are ready to argue their respective cases. During his 20 minutes interactions with the parties, Justice Gadenya directed that each side will spend 30 minutes arguing their respective cases on April 3.
Justice Gadenya becomes the third judge within a month to handle this case after the first two judges, David Wangutusi (the head of the Commercial Court) and his deputy, Elizabeth Jane Alividza declined to hear it.

In this application, Mr Ruparelia claims the law firm is “guilty” of conflict of interest and should not represent dfcu Bank which he sued through Crane Management Services, one of his business entities over rent arrears wrangles, following the takeover of Crane Bank after it was closed by the Central Bank in 2016.
Mr Ruparelia claims that there exists an ‘advocate-client’ relationship with Sebalu & Lule Advocates yet the same law firm is representing an opposing party (dfcu Bank) against them.

Crane Management Services further says because of the aforementioned relationship, confidential information was discussed between the two.

Background

The original matter involves Crane Management Services suing dfcu Bank over rent arrears of Shs2.9b and $385,728.54 for premises formerly occupied by the defunct Crane Bank.
The suit documents indicate that when dfcu Bank took over the assets and liabilities of Crane Bank, it also took over occupation and use of the said rented properties from which the real estate company wants to recover the accumulated rent arrears.

A conflict of interest is a situation in which an individual has competing interests or loyalties.
Last year, Mr Ruparelia also sued two law firms of MMAKS Advocates and A.F. Mpanga Advocates, who had been hired by Bank of Uganda to represent it against him and his Meera Investments Company.