Judge: Receivership premises have duty to pay rates

Licensed premises in receivership, including hotels, cannot neglect payment of commercial rates to local authorities, a district judge hinted yesterday.

Court-appointed receivers “have a social and moral duty to ensure rates are paid”, said Judge James McNulty. He spoke during an annual liquor licensing hearing at Bantry District Court where hotels, restaurants serving wines, and any licensed premises seeking dance licences require court approval.

Not commenting on any specific application, the judge said he envisaged “an issue will arise shortly on the renewal of [liquor] licences being managed by receivers”.

The court, he said, took the view that commercial rates are not being discharged by some management companies appointed by receivers.

Solicitor Ray Hennessy, making an application for a dance licence on behalf of a receiver company appointed to manage the Westlodge Hotel in Bantry, indicated that payment of commercial rates was not normally a condition of licensing renewal.

Mr Hennessy said provisions in legislation for renewal of licence related only to tax clearance, fire officer’s approval and public liability insurance.

It was, however, not suggested in court the hotel had any outstanding rates’ liabilities.

However, the judge said the whole issue of properties in receivership discharging all their liabilities will be a matter for another day.

He told Mr Hennessy: “I am just flagging it. I take the view receivers have a duty to oversee all aspects of their responsibilities in relation to a property in receivership.”

Judge McNulty said: “I hope any management company appointed by receivers or banks have the expertise to oversee the payment of rates.”