Linen Supply of Ireland Ltd -v- Companies Acts [2009] IEHC 544 (04 December 2009)

Linen Supply of Ireland Ltd -v- Companies Acts [2009] IEHC 544 (04 December 2009)

Section 20(1) of the Companies (Amendment) Act 1990 does not permit the court to make an order entitling the company to repudiate leases, and the Examiner cannot disclaim leases for the purpose of a Scheme of Arrangement if prohibited by s. 25B without landlord consent.

Citation
[2009] IEHC 544
Parties
Applicant/company: Linen Supply of Ireland Limited (formerly known as CWS Boco Ireland Limited); Applicant/examiner: Kieran Wallace (Examiner, KPMG); Respondents/landlords: Landlords of Bluebell, Fonthill, Naas Road, Galway, Parkwest leases
Jurisdiction
Ireland
Judgment Date
04 December 2009
Procedural Posture
Examinership/corporate Insolvency / High Court Judgment on Applications to Repudiate/disclaim Leases
Outcome
Applications refused
Legal Topics
Examinership, Repudiation of Leases, Disclaimer of Leases, Scheme of Arrangement, Statutory Interpretation
Insolvency Law Company Law Landlord and Tenant Law Examinership Repudiation of Leases Disclaimer of Leases Scheme of Arrangement Statutory Interpretation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2
Sign in to unlock

Parties

Linen Supply of Ireland Limited (formerly known as CWS Boco Ireland Limited)

Applicant/company

Kieran Wallace (Examiner, KPMG)

Applicant/examiner

Landlords of Bluebell, Fonthill, Naas Road, Galway, Parkwest leases

Respondents/landlords

Procedural Posture

Examinership/corporate Insolvency / High Court Judgment on Applications to Repudiate/disclaim Leases

Legal Issues

  1. 1 Whether s. 20(1) of the Companies (Amendment) Act 1990 permits repudiation of leases by a company in examinership
  2. 2 Whether the Examiner can disclaim leases under s. 9 and s. 290 of the Companies Act 1963 in light of s. 25B of the Companies (Amendment) Act 1990

Ratio Decidendi

Section 20(1) of the Companies (Amendment) Act 1990 does not permit the court to make an order entitling the company to repudiate leases, and the Examiner cannot disclaim leases for the purpose of a Scheme of Arrangement if prohibited by s. 25B without landlord consent.

Court Disposition

Applications refused

Orders

  • Refusal of the company's application to repudiate leases under s. 20(1) of the Companies (Amendment) Act 1990
  • Refusal of the Examiner's application to disclaim leases and assume directors' powers under s. 9 of the Companies (Amendment) Act 1990