High Court grants order preventing building firm from being wound up

AN order preventing a mechanical engineering firm from petitioning to have a building firm it claims owes them money from being wound up has been granted.

Yesterday at the High Court, Mrs Justice Mary Laffoy granted McCabe Builders and McCabe Builder Dublin an interim injunction restraining Erneside Engineering from presenting a petition to the High Court to have the building contractors wound up.

The court also granted an order restraining Erneside from publishing details of any such petition that may already have been presented. The orders were granted on an ex-parte basis, and the judge made the matter returnable to later this week.

Rossa Fanning, counsel for McCabe Builders, said his clients were contracted to work at a e26.6 million development known as the Forum at Sandyford, Dublin 18.

As part of that project, Erneside Engineering were sub-contracted in 2005 to carry out works at the site after McCabes accepted their tender of e990,000. He said that while e1.24m was paid to Erneside, they claimed that they were owed an additional e313,000 for works done.

That debt was disputed. He said solicitors for Erneside wrote to his clients threatening to have the firm wound up. Mr Fanning said that Erneside did not seek to resolved this dispute either through litigation or by arbitration.

He said that by threatening to seek a winding up order, Erneside had engaged in an aggressive form of debt collection which his clients believed was designed “to intimidate”. This was an unhappy case, and his client had no wish to come to court, Mr Fanning continued.

However, given the “significant consequences” of a winding up order, he said that McCabes had “no alternative” other than to come to court to seek injunctive relief.

Mr Fanning also told the court that his client’s companies are solvent.

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