Court of Appeal rejects church claims

The Court of Appeal has dismissed an appeal brought by the trustees of a non-denominational church — the Victory Christian Fellowship against a High Court ruling that Bank of Scotland was entitled to appoint a joint receiver over three of its properties.

The three-judge court yesterday rejected arguments the Victory Christian Fellowship’s trustees Brendan Hade, the church’s senior pastor his wife Shelia Hade of Fountain Head, Rockbrook, Rathfarnham, Dublin, and Gerry Byrne of Woodstown, Knocklyon, Dublin, that the appointment of receivers in May 2013 was invalid because the decision to appoint receivers was precipitated after it obtained unauthorised confidential material about the Victory Christian Fellowship.

Paul McCann and Patrick Dillon were appointed as receivers over the properties at Kilmacud House, Kilmacud Road, Upper Stillorgan; Westland Row and Firhouse Road, Tallaght after Victory Christian Fellowship failed to satisfy a demand by Bank of Scotland for repayment of €18.76m in loans. The properties were put up as security for monies advanced to Victory Christian Fellowship by the bank in 2007.

They had opposed the appeal and argued that Mr Justice Paul Gilligan’s ruling in December 2013 that the appointment was valid, and should remain undisturbed.

The High Court also found that the bank was entitled to judgement of €18.76m against the trustees, and joint receivers it appointed over three of the Fellowship’s Dublin premises, are also entitled to permanent injunctions restraining the trustees and others from obstructing or interfering with the receivers taking possession of properties.

In their appeal, the trustees sought declarations including that the appointment of the receivers by Bank of Scotland in May 2013 was unlawful, was invalid, and ought to be set aside. They also sought an order requiring the receivers and their agents to vacate the three properties.

The three-judge court of appeal comprised of Mr Justice Michael Peart, Mr Justice Gerard Hogan and Mr Justice Alan Mahon dismissed the appeal after finding the bank was contractually entitled to appoint receivers over the properties.