Dubai firm fails in bid to delay action over Quinn assets

A Dubai-based firm has lost its application for a stay on legal proceedings against it arising out of its acquisition of property from companies controlled by the Quinn family.

Mecon FZE wants to be taken out of proceedings brought by the Irish Bank Resolution Corporation against Quinn family members and several companies, including Mecon, over assets which the bank says are part of the Quinns’ international property group (IPG).

Mecon claims it legitimately acquired a property, known as Hi Tech Park in Hyderabad, India, at “arm’s length” from an entity controlled by the Quinn family. The property is said to be worth €60m.

Mecon, whose directors are Indian residents, sought a stay in relation to the Irish proceedings involving it on grounds including that the case should be heard in India. IBRC, it claims, have initiated similar proceedings against Mecon in India.

As the Indian proceedings were brought first, it was the appropriate forum where the action should be heard, Mecon said. Any stay would remain in place pending the outcome of the case in India.

Opposing the motion, IBRC argued that the matter should be heard in Ireland on grounds including that it claims the share transfer involving the Hyderabad property is part of a wider alleged conspiracy, involving members of the Quinn family, of which Mecon is also part.

IBRC also claimed that, under EU regulations, the Irish courts had no discretion but to hear its claim against Mecon.

In his ruling, Mr Justice Peter Charleton said he was using his discretion to dismiss Mecon’s motion.

He said “the joinder” of Mecon to the Irish proceedings was “sensible and just” in the context of the nature of the case.

He noted IBRC’s claims that the allegations at the centre of the action against Mecon and the other defendants were formed, planned, and directed from Ireland. Ireland was where the witnesses were based.

Mr Justice Charleton also noted that Mecon had shown a considerable delay before appearing in the Indian proceedings.

Last year, Sean Quinn Sr and his son, Sean Quinn Jr, were jailed for contempt of court for failing to obey orders preventing asset-stripping from IPG to put them beyond the bank’s reach.

The case is due before Irish courts this month.