Two Cork businessmen obtained an interlocutory injunction yesterday against a receiver from acting over their properties at an industrial estate in Churchfield.
The men, who argued they never missed a payment and there was no justification for calling in the loan, which now stands at just over €1.2m, had been granted an interim order in the case in March.
At the High Court in Dublin yesterday, Ms Justice Marie Baker granted an interlocutory injunction restraining the receiver appointed by Gulland Property Finance Ltd from acting as receiver over the assets of Michael and Anthony Harrington.
Ms Justice Baker stated in her judgment: “It seems to me that the plaintiffs have made out an arguable case that in the absence of registration… or is deemed by statute not to require registration, that the contractual interest in the charge has not become transferred and therefore Gulland may not, in pursuance of the contractual power contained in that mortgage or charge, appoint a receiver.
“Accordingly, I consider that the plaintiffs have made out an arguable case that the power to appoint a receiver had not vested in Gulland at the date of the deed of appointment of the second named defendant as receiver.
"I consider that in the present case that the interest to be protected is the undisputed title of the plaintiffs to the land to which they are registered as owners, I propose making an interlocutory injunction restraining the second defendant [the receiver] from acting as receiver of the Folio lands.”
Ms Justice Baker previously noted the Harringtons had made an arguable case on three grounds for the granting of the ex-parte injunction against the receiver.
Anthony Harrington said the first they knew of the appointment of the receiver was when their tenants were served with notices by receivers earlier this year.
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