IL&P shareholder's case within prescribed time limit, court rules

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.

Today, Mr Justice Kevin Feeney deemed that an application by Piotr Skoczylas, the controlling shareholder of Maltese-registered Scotchstone Capital Funds Ltd, may have been technically flawed, but the court was satisfied that he 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 and, in separate proceedings, an investment fund, Horizon Growth NV, are all challenging the recapitalisation on grounds including it unlawfully imposes an unacceptable €2.7bn burden on Irish and other EU taxpayers.

The Minister for Finance had asked the court to dismiss Mr Skoczylas and Scotchstone's challenge on grounds they were brought out of time.

David Barniville SC for the Minister said that under the Credit Institutions (Stabilisation) Act 2010 – the banking legislation introduced which the Minister is using for the recapitalisation of financial institutions parties such as shareholders of the bank 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.

From that date anyone wishing to bring an objection had until August 3rd to formally lodge their challenge, something which Mr Skoczylas and Scotchstone had failed to do, counsel submitted.

Mr Skoczylas, who is representing himself as an individual shareholder in IL&P, opposed the Minister's motion, and argued that the challenges were valid.

He said that the Minister's motion was "an attempt to take me and Scotchstone out" of the an action which in his view is the "most important case in the history of the State".

The court heard that he was in Malta at the relevant time and had been unable to get back to Ireland within the five day time period.

The court heard Mr Skoczylas originally believed he had obtained lawyers to act on both his and Scotchstone's behalf to bring a challenge. However that representation fell apart on July 31.

He then instructed his fellow shareholders Mr Dowling and Mr McManus to lodge notice of their challenge on both his and Scotchstone's behalf on August 3.

However when they went to file that paperwork, 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 of documents containing his signature was not acceptable.

Mr Skocyzlas returned to Ireland on August 6.

In his ruling Mr Justice Feeney said that while the time limit under the 2010 Act was "stringent and absolute" there could be "no doubt that Mr Skoczylas sought to bring his application to challenge the recapitalisation within time.

On that basis the Judge said while his application could be faulted on technical grounds the consider considered it to be valid.

On that basis, he was satisfied to dismiss the Minister's motion.

The hearing continues next week where further preliminary issues concerning both Mr Skoczylas, Scotchstone and Horizon Growth's challenges will be considered by the court.