Judge refuses to intervene in shop mall sale

A HIGH Court judge has refused to interfere with a judgment recently delivered by one of his colleagues in relation to the sale…

A HIGH Court judge has refused to interfere with a judgment recently delivered by one of his colleagues in relation to the sale of O’Connor’s Nenagh Shopping Centre Ltd, Co Tipperary.

Mr Justice Garrett Sheehan was told yesterday Mr Justice John MacMenamin had refused to block the sale of the debt-ridden centre after having been told a receiver appointed by Bank of Ireland had a multimillion-euro offer for it.

Mr Justice MacMenamin had rejected an application by company liquidator Anthony Fitzpatrick to block the sale. He decided the best course would be to permit the sale to go ahead on the basis that the proceeds would be ringfenced.

The bank’s receiver, Kieran Wallace, told him the money would be protected until the High Court ruled on a claim that the O’Connor family-owned company had remortgaged the centre, which closed last May, to allow family investments an unfair preference over other creditors in a liquidation.

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Counsel Ronnie Hudson told Mr Justice Sheehan that Mr Justice Mac Menamin had subsequently granted the liquidator permission to apply to any vacation judge for liberty to vacate his judgment on the basis of “dramatic new evidence that had just come to light”.

Mr Hudson said that in the application asking Mr Justice Mac Menamin to revisit his judgment he had brought to the judge’s attention matters of title which, he had contended, would prohibit a sale or make one extremely difficult.

Una Cassidy, counsel for the receiver, said Mr Justice MacMenamin had delivered his judgment refusing the liquidator an interlocutory injunction blocking the sale. If he wished to revisit his judgment it would be a matter for him.

She said the main issue of whether certain charges by the bank against the company were void would be dealt with by Ms Justice Mary Laffoy on October 7th.

Mr Justice Sheehan, adjourning all issues until then, said if he wished the liquidator could mention the matter to Mr Justice MacMenamin when he sits as a vacation duty judge during September.