Two shots were fired at a property developer, narrowly missing him, during an attempt earlier this week by a car to force his car off the road, the High Court was told yesterday. Mr Cathal Kelly said the incident occurred on Tuesday night, before the hearing of legal proceedings initiated by him against a Dublin businessman and declared bankrupt, Matt Kelly.

Cathal Kelly told Mr Justice Smyth he believed the incident was connected to an action he has taken separately against Matt Kelly and against tax consultant Mr John McGrattan. He had reported the incident to the Garda and had received protection.

Mr James Salafia SC, for Matt Kelly, said this was the first he had heard of the incident and these were serious allegations against his client and Mr McGrattan.

Later, during cross-examination about an affidavit filed in the proceedings by Mr Kelly against Matt Kelly, Mr McGrattan said he had nothing to do with the incident.

In his proceedings against Matt Kelly, a former director of Kelly's Carpetdrome (in liquidation), Mr Kelly claims he holds an unspecified interest in properties Matt Kelly claims to own. Matt Kelly denies any such interest. The court has been told Mr Kelly's claim has adversely affected a deal by Matt Kelly with the Revenue to settle his tax affairs for €3.6 million.

In his proceedings against Mr McGrattan, with an address at Elm Mount, Stillorgan Grove, Blackrock, Co Dublin, Cathal Kelly claims breach of fiduciary duty relating to a period of years when, it is alleged, Mr McGrattan managed his finances. Mr Kelly claims he trusted Mr McGrattan and is now destitute. Mr McGrattan has denied the claims.

On Wednesday, Mr Justice Smyth began the hearing of a motion by Matt Kelly for dismissal of Mr Kelly's action against him, arguing that that no reasonable cause of action had been disclosed. The hearing concluded yesterday and judgment was reserved to Monday next.

Earlier, Mr Mark Sanfey, for the Official Assignee in Bankruptcy, said his client was taking no view on the merits of the motion but was claiming he held the beneficial interest in the properties in question. Counsel added his client was not involved in the negotiations between Matt Kelly and the Revenue regarding the €3.6 million settlement and had reservations about this.

During yesterday's hearing, Mr Patrick Hunt SC, for Mr Kelly, said his client claimed an interest only in properties at Talbot Street and North King Street. Mr Salafia said Mr Kelly had not made out any case to support his claim of an interest in either the North King Street or Talbot Street properties. Matt Kelly was entitled to a degree of particularity of the claims against him and in five years this was not provided.

Earlier, Mr John McGrattan said he was a tax consultant and not a qualified accountant. Asked was he a solicitor, he agreed he had undertaken, following proceedings taken against him by the Law Society, not to hold himself out as a solicitor. He said Cathal Kelly was "most inept", especially in the building business. He said he had trusted him when they were involved in business.