The Commercial Court has ruled a receiver appointed by ACC Bank is entitled to orders for possession of certain premises in Dublin against a company controlled by businessman and Fianna Fáil national executive member Jerry Beades.
However, Mr Justice Peter Kelly said, while ACC was entitled to the possession orders against Fairlee Properties Ltd over non-payment of a €1.5 million debt, he would not make such orders until various persons and companies said to be in occupation of the properties were notified and given an opportunity to be heard.
In those circumstances, the judge deferred the proceedings to later this month.
Receiver Kieran Wallace is seeking orders for possession of properties located at 158 to 163 Richmond Road, Fairview, Dublin 3 and Unit 6, Tivoli Centre, Richmond Road Industrial Estate, Dublin.
Mr Beades had argued ACC had no authority to appoint Mr Wallace as receiver on grounds the bank had about June 2009 internally written off most of Fairlee’s liabilities to it. He also claimed he was entitled to damages, including exemplary damages, against the bank over appointment of the receiver.
Mr Beades also argued today he was not getting “justice” because of how the case was being conducted and said he intended to apply to the Supreme Court.
Mr Justice Kelly rejected any unfairness to Mr Beades in how the proceedings were conducted. In light of various Supreme Court decisions, Mr Beades, as a director of Fairlee, had no entitlement to be heard on the receiver’s application but had nonetheless been heard yesterday and the proceedings were also adjourned to facilitate him, the judge said.
The judge also noted another High Court judge had last July refused Mr Beades orders preventing ACC appointing Mr Wallace as receiver. He would not allow the court be used as “a soapbox” for Mr Beades to make allegations which were not made in an affidavit, he added.
The judge said there was a complex background to the proceedings dating back to a High Court order of February 2009 under which, by consent, it was ordered ACC should recover some €1.5 million against Fairlee and Mr Beades. Execution of that judgment was stayed until June 30th last with no interest to apply until July 1st.
Mr Beades accepted none of that money had been paid by him or Fairlee and ACC had appointed Mr Wallace as receiver, the judge said. That appointment was unsuccessfully challenged in proceedings before Mr Justice Brian McGovern last July when Mr Beades and Fairlee were also directed to provide names of the tenants of the properties.
While a list was provided, it was only now the tenants had been clarified, the judge said. It was “remarkable” a lot of the tenants were companies, some of which were dissolved, of which Mr Beades was a director or were apparently there with the leave of Mr Beades or his companies, he added.
The judge said Fairlee had previously covenanted with ACC it would not lease the properties without first getting the bank’s written consent but it appeared no such consent was obtained.
Nothing said by Mr Beades amounted to a defence to ACC’s application for an order for possession against Fairlee, the judge ruled. No part of the €1.5 million had been paid and there was no legitimate basis upon which Fairlee could defend the case.
However, the judge noted, ACC was not seeking the possession order should be made now, and the court would not make it, until the other occupiers were notified and given an opportunity to be heard. He directed service of the proceedings on those occupiers, excluding the dissolved companies.