The High Court has approved a receiver’s €3.2 million deal involving shares in Doughiska Ardaun Developments Limited and option rights over 16.6 acres in County Galway, while rejecting a last-minute challenge by judgment debtor Justin Burke.
Aengus Burns of Grant Thornton was appointed receiver by way of equitable execution in 2024 over a 22% shareholding beneficially owned by Mr Burke and over option rights held by Anne Burke. The appointments followed unsatisfied judgments obtained by AIB Mortgage Bank and Allied Irish Banks plc in 2015.
Following earlier negotiations and later Commercial Court proceedings, the receiver reached terms under which DAD would pay €1.9 million to extinguish the option agreements and €1.3 million for Mr Burke’s shares.
Mr Burke opposed approval. He claimed, among other matters, that DAD did not own the relevant lands, that the lands had been undervalued and that he had an investor willing to acquire the interests for €11.5 million. He also questioned the legal effect of the company’s earlier name change.
Mr Justice Barry O’Donnell rejected those arguments. The court found that DAD was the same legal entity as McDonagh Property Developments Limited despite its name change. It also held that any separate dispute over ownership of the lands did not prevent DAD from entering the proposed transactions with the receiver.
The judge said Mr Burke had provided no valuation evidence contradicting the receiver’s professional reports and no substantive evidence supporting the claimed €11.5 million investment.
The court also addressed the wider legal position of court-appointed receivers. It held that receivers by way of equitable execution generally exercise their own commercial judgment and do not ordinarily require court approval. However, they may seek approval for particularly significant or “momentous” transactions.
The court found that this was such a case. It was satisfied the receiver had acted reasonably and prudently and that the proposed deals represented the best value reasonably obtainable.
Mr Burke’s application was refused and the receiver’s transactions were approved. Final orders were left to a later hearing.