Recapitalisation challenge time limit met

The High Court has ruled that an Irish Life & Permanent shareholder’s challenge against the Government’s recapitalisation of the bank was brought within the allowed time period.

Yesterday Mr Justice Kevin Feeney deemed that an application by Piotr Skoczylas, the controlling shareholder of Maltese-registered Scotchstone Capital Funds Ltd, made a bona fida attempt to bring his challenge within the prescribed time limits allowed.

The judge was ruling on one of a number of preliminary issues raised in proceedings in which Mr Skoczylas, his company, two IL&P shareholders, Gerard Dowling and Padraig McManus, are challenging the recapitalisation on grounds including it unlawfully imposes a €2.7 billion burden on Irish and EU taxpayers.

David Barniville SC for the Minister for Finance said that under the Credit Institutions (Stabilisation) Act 2010 parties such as bank shareholders are required to serve notice of any legal challenge within five working days of the making of the recapitalisation order. The minister had secured an order on July 26 last allowing the bank’s recapitalisation to go ahead. &

Mr Skoczylas was in Malta at the relevant time and instructed his fellow shareholders Mr Dowling and Mr McManus to lodge notice of their challenge on both his and Scotchstones behalf on August 3.

However, at the Central Office of the High Court, they were informed that Mr Skoczylas’s application was invalid because it lacked original documentation containing his signatures. A scanned copy was not acceptable.

Mr Skocyzlas returned to Ireland on August 6.

On that basis Judge Feeney dismissed the minister’s motion. The hearing continues next week.