The Gazette 1976

GAZETTE

April 1976

like

this

there

should

be

somebody

totally

Dublin on 23 March, Mr. Justice Hamilton made an order for the winding-up of Irish Trust Bank Ltd. under the provisions of the Central Bank Act, 1971, and appointed the Official Assignee as official liquidator. Later in the day, the Supreme Court, on the applica- tion of Mr. Brian McCracken, S.C., who had appeared for a number of creditors in the High Court, granted and listed the hearing of an appeal against it for a stay of execution on Mr. Justice Hamilton's order for Friday, 26 March. Mr. Justice Hamilton, in his order, had given the Official Assignee liberty to apply to the Cou rt for leave to engage such professional services as he con- sidered necessary to assist him in the winding-up. Mr. Justice Hamilton directed the Official Asignee to lodge a statement of account on or before July 31 of this year and for each succeeding year on that date. He made an order confirming the direction of the Central Bank made on February 18 last, suspending activities of the Irish T r u st Bank Ltd., and he extended the period of its operation for a further six months. Petition dismissed under Companies Act Mr. Justice Hamilton dismissed a petition brought on behalf of a number of creditors for an order of winding up under the Companies Act. This petition had been brought on behalf of a number of creditors represented by Mr. Brian McCracken, S.C., and sup- ported by a number of creditors represented by Mr Kevin Lynch, S.C. The Judge said that the petition and the application by the Central Bank had been heard together and in the course of the submissions made it had been sug- gested that because of various factors relating to the staffing of the Official Asignee's office it would not be appropriate to make an order under the Central Bank Act. The Court, being conscious of the difficulties with regard to the staffing of the Official Assignee's office, had given very careful consideration to the submis- sions made by Mr. McCracken and by Mr. Lynch In all probability, if the depositors as represented by Mr McCracken and Mr. Lynch had agreed on the appoint- ment of a liquidator, the Cou rt would have made an order on the petition in accordance with the pro- visions of the Companies Act. In the absence of such agreement, however, the Court, after careful consideration, would order' that ffie winding up be in accordance with the provisions of the Central Bank Act, 1971, and would appoint the Official Assignee as liquidator. Mr. Justice Hamilton said the Court was conscious of its obligations to the Central Bank, to the share- holders and depositors and would not tolerate any Í e l a ^ I n - t h e e x P e d i t i o u s dealing with the ma t t er bv the Official Assignee's office. If the Official Assignee considered himself to be in any difficulty relating to the staffing of his office with regard to the winding up of this matter, the Court would entertain any aplica- tion by him for leave to engage such professional

independent. He asked for an order winding up the company under the Companies Act and appointing Mr. Don- nelly of Haughey, Boland and Co. as liquidator and also that a Committee of Inspection be appointed under the Act to be consulted by him. Mr. Kevin Lynch, S.C., said he did not dispute the position regarding the financial standing of the Bank but as regards the suggestion that there might be a delay in the winding up with a view to the prospect of reconstruction, the depositors for whom he appeared were anxious t hat their deposits should be repaid, insofar as the assets were available, at the earliest possible date and they did not welcome the idea that the matter might be put on the long finger in the hope of some vague improvement in the financial situation. On the question of who should be liquidator, Mr. Lynch said that Mr. Shortall had familiarised himself with the affairs of the company and that was a very strong point in favour of his appointment. Also he was an independent person, Mr. Shortall had already been in at the Central Bank and if the Cou rt made an order under the Central Bank Act and appointed the Official Assignee it would be open to the Court to authorise the Official Asignee to engage Mr. Shortall to assist him in the winding up of the Bank. Mr. Raymond O'Neill, S.C., for the Central Bank, said the Central Bank considered very strongly that Mr. Shortall was the person best equipped to wind up this company. He could only be appointed as Official Liquidator if the Court made the order under the Companies Act. The Court could undoubtedly authorise the Official Assignee to assist him as liquidator if the Court made the order under the Central Bank Act. He did not understand why it was suggested that it was a disadvantage for Mr. Shortall to be familiar with the affairs of the company nor did he understand why it was suggested that Mr. Shortall was not independent. The Central Bank, he said, had carried out its own investigation of Irish Trust with its own officers and had engaged Mr. Shortall to carry out an independent investigation. It was not correct to say that the Central Bank had acted on the report of Mr. Shortall. Mr. Justice Hamilton said it might be helpful if Mr. McCracken's clients were prepared to agree to the appointment of Mr. Shortall. Mr. McCracken said he would take instructions and Mr. Justice Hamilton said he would adjourn to enable him to take instructions. After the a d j ou r nme n t, Mr. McCracken said he was producing a list of the persons whom he was repre- senting but in accordance with banking practice he would ask that the names of the depositors be not disclosed. He would hand them into Court if necessaiy. Mr. O'Neill said he would oppose that being done. Mr. Justice Hamilton, after further argument, said he would make an order joining as a defendant in the Proceedings brought by the Central Bank, Mr. O Foghlu as representing the depositors. On the question as to whether Mr. McCracken's clients were prepared to agree to the appointment of Mr. Shorthall as liquidator, Mr. McCracken said his Order made for Winding-up under Central Bank Act in a reserved judgement delived in the High Cou rt in

services as he considered necessary. Costs allowed on winding-up Order

Mr. Raymond O'Neill, S.C., for the Central Bank, asked for costs of his proceedings against the defen- dants, and Mr. Justice Hamilton said he would make an order declaring him to be entitled to his costs He

55