The commercial court, will on Monday, April 29th rule on whether city law firm Sebalu & Lule Advocates can represent dfcu Bank in a case brought against the bank by billionaire businessman Dr. Sudhir Ruparelia.
The businessman, through is real estate management company Crane Management Services (SMS) dragged the law firm to court over what he says is conflict of interest, since the law firm has been CMS’ previous lawyers. He argues that 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,” Sudhir’s petition reads in part.
Mr Ruparelia also wants the court to issue a permanent injunction, restraining Sebalu & Lule Advocates from appearing as defence counsel for dfcu bank in the other court case that the two principals are battling out.
In HCCS No.109 of 2018, CMS sued dfcu for severally breaching various tenancy agreements in respect to 13 properties in Kampala and Mbale. CMS is demanding for USD385,728 and UGX2,998,558,624 as rental arrears. This is before interest, general damages, interest on general damages and costs of the suit.
Dfcu is also facing 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.
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Meera also dragged dfcu to court for breaching a tenancy agreement for Plot 38 Kampala (former Crane Chambers) and Plot 40A Kampala Road and wants a compensation of USD 8, 660,462.34.
Dfcu is represented by Sebalu & Lule Advocates in both cases.
In December 2017, the Commercial Court disqualified Mr Masembe and Mr Mpanga from the sh397b Sudhir Ruparelia’s case against Bank of Uganda (BoU), citing conflict of interest.
Should Sebalu & Lule be dismissed from the case, they stand to lose huge revenues from the multibillion case. Their reputation will also be at stake- something that could also cost them in form of future lost opportunities.
