A €3.6 million agreement made by Mr Matt Kelly, a Dublin businessman and a declared bankrupt, to settle his tax affairs with the Revenue authorities has broken down, the Supreme Court was told yesterday.
Mr Kelly, a former director of Kellys Carpetdrome (in liquidation), came to an agreement with the Revenue Commissioner in May.
He was described in an earlier court hearing as a "unique species of bankrupt - one who is a multi-millionaire".
Mr James Salafia, for Mr Kelly, told the Supreme Court yesterday that, following the agreement, the matter had been adjourned on several occasions.
On each occasion the court was assured the matter remained settled and intact and that the settlement was being implemented.
"To his distress", counsel said, he had been informed earlier yesterday by the Criminal Assets Bureau (CAB) and the Revenue that, in their view, the settlement had broken down.
"This comes as a shock and disappointment to us. I am firmly of the view that the settlement is intact and should be implemented," Mr Salafia said. They would wish to enforce the settlement "based on express provisions in it".
Mr Richard Nesbitt for CAB said the "unhappy fact" was that Mr Kelly had not complied with the agreement.
He was not sure the court should be troubled by the matter further as it went outside the issues to be dealt with by the court.
The effect of the breakdown was that the liquidator's appeal in a bankruptcy matter involving Mr Kelly should proceed before the Supreme Court.
CAB would be the beneficiaries of the bankruptcy should the liquidator's appeal succeed.
Mr David Barnville, for the liquidator, said that, when the agreement was reached last May, his client had been happy to have the bankruptcy matter adjourned.
In view of what Mr Nesbitt had said, the liquidator was very anxious that another hearing date be fixed for the bankruptcy matter.
Ms Justice Denham adjourned the matter to next Thursday.
Kellys Carpetdrome was wound up by the High Court in July 1981 on the petition of the Revenue.
The liquidator brought proceedings against two directors, Mr Eamon and Mr Matt Kelly.
In 1983 the High Court heard the business of the company was carried on from October 1976 to February 1980 with intent to defraud creditors of the company and for other fraudulent purposes. The court found the two directors were personally liable for the debts and other liabilities of the company and should pay £1.9 million.
In January 1984, Mr Kelly was declared a bankrupt.
The Official Assignee in Bankruptcy fixed July 31st, 1997 as the last day on which creditors' proof of debts would be received by him in the bankruptcy. No proof of debt was filed by that date.
