The High Court has rejected Ben Gilroy’s challenge to the appointment of a receiver over two Dublin 11 properties, finding that he had not established a lease or other interest that entitled him to resist the receiver’s claims.
The judgment, delivered by Mr Justice Mark Sanfey on 15 January 2021, concerns related proceedings over 131D Slaney Road and 89F Lagan Road. Ken Fennell had been appointed receiver over both properties by Allied Irish Banks (AIB) in 2014, after borrower Christopher Noone defaulted on loans secured against them.
The court had granted interlocutory relief in April 2016, and the receiver subsequently took possession of both properties. At the later plenary hearing, Gilroy, the only defendant to participate, disputed the lawfulness of the receiver’s appointment and said he had a right to occupy the properties.
Evidence from Noone described two verbal arrangements made before the receivership. He said Gilroy had offices at Lagan Road for his political party under a “very loose arrangement”, with no rent in place. At Slaney Road, Noone said Gilroy was to refurbish a dance studio and begin paying rent if it became successful. Noone said he had not told AIB about these arrangements.
The court found that the arrangements did not constitute a lease or enforceable agreement giving Gilroy an interest in the properties. It also found there was no evidence AIB had given written consent to either arrangement, as required under the mortgage terms. The judge said that even an agreement for a lease without the mortgagee’s written consent would not bind AIB or a receiver acting on its behalf.
Sanfey J held that Gilroy was not entitled to resist the receiver’s claims or advance his arguments challenging the appointment. The judge also addressed those arguments, rejecting challenges concerning the deeds of appointment, the authority of the bank’s signatories, the statutory power to appoint a receiver, and the validity of the mortgages and repayment demand.
The judgment did not make final orders. The receiver had taken possession of Slaney Road and Lagan Road had since been sold. The court gave the parties 14 days from communication of the judgment to file brief written submissions on the orders to be made, including costs, and said it would then make final orders without further reference to them.