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GAZETTE
April 1976
like
this
there
should
be
somebody
totally
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
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
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
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