Director ordered to appear in court for failing to pay supplier

Company director Mr Naseem Ahmad has been ordered to appear before the High Court to explain why he should not be jailed for …

Company director Mr Naseem Ahmad has been ordered to appear before the High Court to explain why he should not be jailed for failing, refusing or neglecting to honour his undertaking to pay a Co Sligo livestock supplier €515,000.

The court also granted Mr Patrick Hynes, of Larkhill, Beltra, Co Sligo, an interlocutory injunction that restrains Mr Ahmad, with an address at Old Clyhaun Road, Galway, from reducing his assets in the State below €515,000 and ordering him to disclose his assets in the State.

Previous proceedings were brought on an ex parte basis (without notice to Mr Hynes) against Mr Hynes and his company Sanbury Ltd, trading as Beltra Meats, by Fahd Foods International in 2000. Mr Ahmad was a director and principal shareholder of Fahd Foods.

In those proceedings, Fahd Foods got a temporary order restraining Mr Hynes and his company from reducing their assets below £246,000 (€312,600).

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Mr Hynes subsequently filed a sworn statement denying the claims made on behalf of Fahd Foods and, by agreement between the parties, the injunction was discharged. Mr Hynes and Sanbury denied they had any liability to Fahd Foods and counterclaimed for monies they claimed were due to them.

In an affidavit, Mr Hynes said that, on the discharge of the injunction on February 21st, 2000, Mr Ahmad gave an undertaking that he would be personally responsible to Mr Hynes and Sanbury in the event of any damages or costs being awarded against Fahd Foods.

When his counterclaim came for hearing before the High Court on February 23rd this year, the court was told there had been difficulty in getting instructions and that Mr Ahmad was not in court, Mr Hynes said.

The court refused to adjourn the hearing and awarded a sum of €363,873 together with legal costs currently estimated at €150,000.

Mr Ahmad did not appear at yesterday's hearing and Mr Justice Lavan made an order in favour of Mr Hynes directing that Mr Ahmad be brought before the court on April 28th.

The judge said that, due to the draconian nature of the order, Mr Ahmad could come to court prior to that date if he gave Mr Hynes 48 hours' notice.