The High Court has ordered possession of Ballyburn House and adjoining lands in County Kildare to be delivered to receivers, after finding no credible defence to the plaintiffs’ application on the evidence before it. Execution of the order was stayed for three months from 17 December 2015.
Mr Justice Hedigan’s judgment concerned an application by Allied Irish Banks plc and Dan Morrissey (IRL) Ltd, which was in receivership. The plaintiffs sought possession under the Registration of Title Act 1964 and the Rules of the Superior Courts, along with a declaration that Philip Morrissey Junior had no legal or equitable interest in the lands described in Folios 771 and 54062F.
The plaintiffs relied on mortgage and debenture instruments dated 2006, 2007 and 2009 securing lending facilities. The judgment says the secured sums remained unpaid and the bank appointed receivers over the company’s assets, including Ballyburn House, an adjoining seven acres and another adjoining property at Ballyburn Upper. Margaret Wright was occupying the latter property under a caretaker’s agreement with the plaintiffs.
The receivers had negotiated a sale, with a contract dated 3 March 2015. The plaintiffs said the intended purchasers would not proceed while the defendant claimed an interest, unless the plaintiffs excluded the disputed part or indemnified them for the costs of resolving the claim.
The defendant first maintained that he was a tenant and disputed the validity of a termination notice. He told the Private Residential Tenancies Board that his tenancy began in December 2007, that it required 12 months’ notice, and that rent was deducted from his wages. He also said he was negotiating to buy Ballyburn House and the adjoining farmyard. The Board found the termination notice valid and insufficient proof of an agreement binding the receivers. On appeal, the defendant claimed an agreement to purchase the properties; the Tenancy Tribunal then held it lacked jurisdiction because ownership was claimed.
The defendant sought time to obtain legal aid and a full hearing, but had not filed the replying affidavit ordered by the court. Justice Hedigan said he had considered those submissions but could not identify a realistic defence. He noted that the defendant had not sworn an affidavit verifying his factual claims and that his earlier account to the Board—that he was negotiating to purchase—was at odds with a rental-purchase agreement giving rise to a property interest. A company letter dated 7 April 2015 said the only arrangement was a caretaker arrangement and no disposal had been authorised.
The judge said the plaintiffs had made out their case on a prima facie basis and granted the order and declaration sought. Possession is to be delivered directly to the receivers. The judgment records an intended sale price of €5,615,000; it does not state that the sale was completed.