The High Court has ordered that monies improperly transferred from the operating company of Il Segreto Restaurant on Merrion Row, Dublin 2 (Citywest Hire Limited (In Liquidation)) to the operating company of the nearby Unicorn Restaurant (Petrolo Limited) effected a fraud on Citywest and ordered a repayment in favour of the Official Liquidator.
On 26 May 2014, the High Court ordered that the effect of the lodgement to the Petrolo account was to deprive Citywest of monies to which it was then entitled, which had the effect of perpetrating a fraud on Citywest in breach of Irish company law on fraudulent disposition of company property.
Fraudulent disposition of company property has been the subject of very little judicial deliberation having been previously applied in only two reported Irish cases.
This decision therefore constitutes an important additional judicial precedent for liquidators, creditors and/or contributories of companies going forward who are seeking to reverse the effect of a fraud previously committed.
William Fry acts on behalf of Myles Kirby who is the Official Liquidator of Citywest.
To view a more detailed article on this decision, please click here.
Contributed by Delia McMahon.
