The sale by the Minister for Defence of the former 90-acre military barracks at Ballincollig, Co Cork, to a property developer can now go ahead.
The sale by the Minister for Defence of the former 90-acre military barracks at Ballincollig, Co Cork, to a property developer can now go ahead.
In the High Court, Mr Justice Paul Gilligan ruled a settlement agreement between the parties in dispute, the Minister, Ballincollig Holdings Ltd - which claimed to hold the interest in the leases - and O'Flynn Construction Co Ltd.
The €41 million sale of the property had been held up because Ballincollig Holdings, South Mall, Cork, had claimed the property should revert to them.
Mr George Brady SC, counsel for the Minister; Mr James Dwyer SC, counsel for O'Flynn Construction; and Mr Maurice Gaffney SC, counsel for Ballincollig Holdings, told Judge Gilligan the dispute had been settled in a manner accepting the Minister was not bound to surrender the property to Ballincollig Holdings and which would allow the sale to go ahead.
Mr Brady said the Minister was not seeking any order as to costs. The funds raised from the disposal of military properties are being invested in the redevelopment of other military installations and essential new equipment.
The delay in disposing of the former Murphy barracks at Ballincollig would, according to the Department of Defence, have had significant financial implications.
The estimates for the Department for next year had already been framed on the basis that the €41 million would be realised prior to the Government finalising the Budget for 2004 in December.
The Department had also claimed the delay could have had a knock-on effect on the sale of remaining properties at the former Murphy barracks.
The court had earlier heard that the directors of Ballincollig Holdings claimed to hold the interest in the leases and was alleging that, once the lands ceased to be used as a military barracks, they should revert to them.
The purchaser of the barracks, O'Flynn Construction, with registered offices at Model Farm Road, Cork, had refused to complete the purchase until the dispute between Ballincollig Holdings and the Minister had been resolved.