99-year old widow goes to court to recover her only asset from suspended attorney

A 99-year old widow has been forced to launch expensive court proceedings against suspended Durban attorney Shahir Ramdass in an attempt to get back almost R640,000 — the proceeds of the sale of her home and her only asset — that he allegedly misappropriated.

The Legal Practice Council (LPC) in KwaZulu-Natal obtained a court order on September 9 last year suspending Ramdass from practising after complaints that he “rolled” trust fund money in an unrelated property transaction, failed to wind up a deceased estate after seven years, and “transferred”, without authority, R5m from another deceased estate.

Since then, TimesLIVE Premium understands, dozens of former clients have laid complaints with the LPC and have attempted to lodge claims against the Legal Practice Council Fidelity Fund to recover money they say is missing.

But because the fund is a fund of “last resort”, they first have to exhaust “all available remedies” against Ramdass, his firm or his estate, including launching possible sequestration proceedings.

Narainamma Naidoo’s family have already incurred costs of more than R15,000 hiring lawyers to launch an application in the Durban high court, set down to be heard in June, in an attempt to get a judgment against him.

Ramdass initially used the excuse he could not pay Naidoo the money deposited in his trust account as the proceeds due to her from the sale of her Montclair home, because his accounts had been “frozen by the LPC”.

But the funds were deposited into his trust account on September 3 2024. In correspondence with Naidoo, the LPC confirmed it had “taken over the accounts” on September 9 that year. 

In an e-mail seen by the TimesLIVE Premium, the LPC confirms on that date “only R12,905.94” was in the account.

At this stage, it is not clear whether this was the total amount of funds left in the entire trust account of the once highly successful conveyancing firm — which would likely to have up to R50m in its trust “pot” at any given time — or whether this was what was left in credit to Naidoo after the balance of the funds were diverted elsewhere.

However, Naidoo’s son (whose name is being withheld for professional reasons) — who has been assisting her in her fight to recover her money — believes that was all that remained, in total, and “millions of rand” were transferred from the trust account in the lead-up to the hearing of the LPC’s suspension application, which was initially lodged and served on him in July that year.

In the application in the Durban high court, the son says his mother's home sold for R680,000. Ramdass and Associates were appointed as conveyancers and the buyer's bank deposited the money on September 3, when transfer took effect.

According to the final statement of account from the law firm, the balance of the proceeds of the sale was R636,279.91.

He said the following day he made contact with a conveyancing clerk, who said she was waiting for proof of payment from the bookkeeper.

“On September 10, after failing to get satisfactory responses from the clerk, I said that I would come to the offices in Umhlanga to make further enquiries from Mr Ramdass himself. Not long after that call, Mr Ramdass called me and informed me that the bank accounts have been 'frozen by order of court' and he will not be able to make payment immediately.

“However, he promised he was working towards having the court order set aside and he would make payment to me in a few days. To date this promise has not been fulfilled.”

He said he lodged a complaint with the LPC and was advised to lodge a claim against the fidelity fund.

When he submitted documents to the fund, he was told he could only claim once he had “exhausted all over available remedies to the point of sequestration”.

In November last year, attorneys Sunil Singh and Associates advised they now acted for Ramdass and the firm.

“I immediately wrote to them demanding payment and warning of civil litigation in the event of nonpayment,” the son said.

He said Singh had admitted liability and said Ramdass would pay up once he had sold certain of his properties.

In December Singh made a similar promise — but to date, despite written demands, his mother still did not have her money.

“I am advised it is the norm within the profession to pay the seller the balance of proceeds of the sale within one to two working days following the registration of the transfer. It is now five months later.

“The trust banking account does not currently reflect the funds due to my mother and the inference is that he has misappropriated the funds for other purposes.”

He asked that the court grant a punitive costs order against Ramdass “to voice its displeasure and send a strong signal to the legal fraternity”.

Singh said Ramdass had instructed him he was liquidating whatever properties and assets he had to reimburse the complainants. Asked if he had paid anyone back yet, Singh said: “Not that I know of”.”

He said Ramdass did not dispute he owed the money.

At the time of his suspension, Ramdass told TimesLIVE Premium he had consented to the order so that an inquiry into his firm’s affairs could be done as quickly as possible because “everything is easily explained”.

He claimed that he had uncovered theft committed by an employee in a position of trust.

Pearl Mfusi, KwaZulu-Natal LPC director, confirmed Ramdass remained suspended from practice.

“A number of complaints have been formally launched and our team continues to investigate all matters. The LPC will continue to do all that it can to assist all complainants and to bring all matters to finality as soon as possible,” she said.