Businessman Mr Harry Crosbie is appealing to the Supreme Court an order directing him to attend before the Master of the High Court for examination under oath about the affairs of a company which is alleged to have misappropriated funds and to owe the Revenue £2.5 million.
It is understood Mr Crosbie will say he has no connection with the company, Eastland Warehousing Ltd, in voluntary liquidation, and no knowledge of any secret account allegedly operated by the company.
In the Supreme Court yesterday, Dr Michael Forde SC, for Mr Crosbie, said his client would be appealing against the High Court order made by Mr Justice Peter Kelly on Monday on the application of Mr Tom Kavanagh, one of the joint liquidators of Eastland.
Dr Forde said the order was made despite the fact that his client had sought an adjournment to file a replying affidavit. This was refused.
The Chief Justice, Mr Justice Hamilton, acknowledged Dr Forde's application. A date for the Supreme Court appeal is expected to be fixed later.
Last Monday, the High Court was told, in an affidavit from Mr Kavanagh, that Mr Crosbie "appears to have been a beneficiary" of at least two payments made from a secret First National Building Society account operated by the directors of Eastland. It is understood Mr Crosbie will state that he sold property to Mr John McDonnell and Mr Joseph McNamara, the directors of Eastland, and was paid in the usual course of business.
Eastland was one tenant in a property at North Wall Quay, Dublin, owned by HJS Ltd, a company of which Mr Crosbie was one of three directors and a half shareholder. Mr McDonnell, of Rathbeale Crescent, Swords, Co Dublin, and Mr McNamara, of Clonkeen Crescent, Kill O' The Grange, Dun Laoghaire, were the other directors and shareholders.
Mr Crosbie has stated that he had no connection with the operation or running of Eastland and no connection with the company whatsoever other than as landlord. In 1995, Mr Crosbie sold his shares in HJS and had no further participation in the company.
In addition to making an order directing Mr Crosbie to attend before the Master of the High Court, Mr Justice Kelly on Monday also made similar orders under Section 245 of the Companies Act in respect of Mr McDonnell, Mr McNamara and Mr Aidan O'Driscoll, of River Valley View, Swords, a bookkeeper said to be responsible for Eastland's books.
In April 1998, Mr Justice Kelly granted orders to the liquidators against the two Eastland directors, and against HJS Ltd, restraining them from reducing their assets in the jurisdiction below £2 million and from reducing their shares in HJS below £2 million.
Mr Kavanagh said in an affidavit that the company, which operated a bonded warehouse which stored drink, appeared to have retained for its own use and/or misappropriated to itself or through its directors very significant amounts of money. In July, the High Court allowed the sale of the warehouse. The benefits have been lodged in court.
This week, Mr Kavanagh said investigations were continuing into Eastland. These disclosed the company's liability to the Revenue may exceed £2.5 million.
