Senior counsel Godfrey Lule, who stood in for Oscar Kihiika, the advocate representing rwanyarare and five others against Obote, told acting Judge Remmy Kasule that they had decided to drop the case against Obote since he was dead.
Obote died on October 10 in a South African hospital where he had been admitted a few weeks after he was transferred from his exile home in Lusaka, Zambia.
Kenneth Omoding and Moses Ojakol, the lawyers representing Obote and three others, did not object to the withdrawal.
However, the two warring groups of the Uganda Peopleâ€™s Congress (UPC) failed to resolve their differences over the party leadership after an eight-hour meeting at Uganda House on Saturday.
A rift hit the party after Obote sacked Rwanyarare and his team and appointed Hajji Badru Wegulo to head the Constitutional Steering Commission (CSC) he (Obote) created to replace the PPC.
Obote also appointed Peter Mukidi Walubiri, Akbar Adoko Nekyon and Livingstone Okello-Okello as members of the CSC.
Last week, Kasule urged the two wrangling groups to talk to each other for political development in the country and for the smooth holding of their delegatesâ€™ conference.
However, the two groups stunned court when they started treading accusations and counter accusations for failure to settle their rift out of court.
Omoding and Ojakol had presented to court what they called a consent judgement and had wanted the court to endorse it.
Rwanyarare withdraws Obote case