Publican fails to have AIB wound up over alleged debt

A publican’s bid to have Allied Irish Banks wound up over non-payment of an alleged €40,380 debt has been dismissed by the High Court.

Mr Justice Paul Gilligan yesterday said he was “quite satisfied” to strike out an application by Eddie O’Leary, Main St, Charleville, Co Cork, to have the State-owned bank liquidated.

The judge said the application was “an abuse of process”, and an “attempt by Mr O’Leary to embarrass the bank”.

Mr O’Leary claims he is owed €40,380 by AIB. He has alleged that he was overcharged interest on his bank accounts on dates in the early 1990s, and between 2001 and 2003.

Late last year, Mr O’Leary made a demand on AIB for payment of the money. When that demand was not satisfied, he petitioned the High Court to wind-up AIB on the basis it was insolvent and unable to pay its debts.

Yesterday, AIB asked the High Court for orders striking out Mr O’Leary’s application.

The bank, represented by Paul Fogarty, claimed the application amounted to an abuse of process.

Mr Fogarty told the court the petition was a problem for the bank and had the potential to affect its business.

Mr O’Leary’s claim for €40,000 against AIB was neither “accepted nor admitted”, Mr Fogarty said.

In relation to the overcharging claim, Mr Fogarty said the bank had taken a commercial decision to offer Mr O’Leary a sum of €8,500.

In addition, he said Mr O’Leary was not a creditor of the bank and that he owes AIB €420,000 on foot of loans advanced by the bank to the publican.

Mr O’Leary, who represented himself, told the court, he was “owed the money” by AIB.

In his ruling, Mr Justice Gilligan said he was satisfied Mr O’Leary “was not a creditor of AIB”, given that he owed the bank in excess of €400,000. No evidence had been put forward by Mr O’Leary that would allow it to make an order winding up AIB.

The judge struck out the petition and ordered that Mr O’Leary could not bring any further petitions to wind-up AIB except with permission of the court.

The judge, who told Mr O’Leary he could appeal his ruling to the Supreme Court if he so wished, also awarded AIB its legal costs against Mr O’Leary.