Judge to seek EU ruling on bank shareholders’ challenge

Judge Iseult O’Malley, who has been dealing with a Permanent TSB shareholders’ challenge to the constitutionality of laws which permitted the bank’s €4bn recapitalisation by the State, is to seek a preliminary ruling on the law from the European Court of Justice.

She said yesterday that the High Court was not in a position to say definitively whether the Court of Justice would resile from, qualify, or affirm the law as outlined on the Credit Institutions (Stabilisation) Act used by the finance minister to “stabilise” the bank.

Piotr Skoczylas, his company Scotchstone Capital Fund Ltd, Gerard Dowling, and Padraig McManus have challenged the 2011 direction of the minister to inject €2.7bn into the former Irish Life and Permanent.