Court is asked to discharge injunction on assets

A Cork man has asked the High Court to discharge an injunction, granted in 1997 to the Criminal Assets Bureau, restraining him…

A Cork man has asked the High Court to discharge an injunction, granted in 1997 to the Criminal Assets Bureau, restraining him from reducing his assets below £1.65 million.

Dr Michael Forde SC, for Mr Patrick McSweeney of Fairwinds, Waterfall Road, Bishopstown, Cork, said the order, made on April 15th, 1997, should never have been made because it was unconstitutional with no basis in Irish law.

He told Mr Justice O'Sullivan that several efforts had been made to have the interim order challenged at an interlocutory hearing. However, all efforts to have such a hearing convened had been frustrated.

An attempt had been made to vary the £1.65 million "freezing" order so Mr McSweeney could employ legal representatives of his choice but this too was denied although that denial was now under appeal, counsel said. On another occasion, when interlocutory proceedings were about to get under way, the hearing was postponed because counsel for the CAB was engaged in another case.

READ MORE

In two further sets of proceedings in the High Court, the CAB is seeking to obtain judgments against Mr McSweeney for more than £3 million.

In the first it is seeking judgment for £1.49 million in respect of alleged unpaid taxes and interest which the bureau says is due for the years 1992, 1993, 1994 and 1996.

In other proceedings, it is seeking an order for judgment for £1.62 million for alleged unpaid taxes and interest penalties for 1995.

Yesterday, Dr Forde said the CAB had no legal standing to bring the case against his client. What locus standi had the CAB to bring tax collection proceedings, he asked.

Contrary to the practice of Irish courts in issuing "freezing" injunctions over the past 15 to 18 years, the question of whether Irish courts had the jurisdiction to make such orders had never been tested, Dr Forde argued.

The hearing was adjourned to today when counsel for the CAB will respond to the submissions.