However, if IBRC fails to take reasonable steps which both protect the Indian property and ensure Mecon FZE is not exposed to any greater risk than necessary, due to having to deal with proceedings brought by IBRC against it in Ireland and India, Mecon can renew its bid to stay the proceedings against it here, the court said.
IBRC alleges Mecon FZE is part of an alleged conspiracy by various Quinn family members and companies to place valuable assets beyond the bank’s reach.
IBRC previously secured orders joining Mecon to its proceedings, initiated in 2011, against the Quinns and several firms over assets the bank maintains are part of the Quinn international property group.
Freezing orders were obtained against Mecon and other alleged co-conspirators as part of IRBC’s efforts to recover assets linked to the Quinns.
A date for the full hearing of IBRC’s case here has yet to be fixed.
Mecon denies conspiracy and argues it legitimately acquired a property — Hi Tech Park in Hyderabad, India, with an estimated value of over €60m — at “arm’s length” from a complex entity controlled by the Quinn family.
In 2013, Mecon, whose directors are Indian residents, sought a stay on the Irish proceedings against it, arguing the appropriate forum was India, where IBRC had also brought proceedings against Mecon.
In January 2013, the High Court ruled joining Mecon to the Irish proceedings was “sensible and just” and refused a stay.
Mecon appealed to the Supreme Court which, in a reserved judgment yesterday, dismissed the appeal.