CTO Greenclean Environmental Solutions Ltd v Companies Act (Approved) [2023] IEHC 230 (21 April 2023)

CTO Greenclean Environmental Solutions Ltd v Companies Act (Approved) [2023] IEHC 230 (21 April 2023)

The Petitioner is not entitled to priority payment of its fees and expenses because it expressly ceded priority to the liquidator in the Deed of Acknowledgment of Priority. Fergus Applebe is not entitled to reimbursement from the company for the €27,675 paid to the former liquidator, as the obligation to pay was that of the Petitioner, not the company.

Citation
[2023] IEHC 230
Parties
Company: CTO Greenclean Environmental Solutions Limited (in liquidation); Official Liquidator: Myles Kirby; Petitioner/creditor: Louis J. O’Regan Limited; Applicant/solicitor for Former Liquidator: Fergus Applebe; Former Liquidator: Alan Fitzpatrick
Jurisdiction
Ireland
Judgment Date
21 April 2023
Procedural Posture
High Court Application in Company Liquidation / Judgment on Applications for Priority of Expenses and Final Directions in Liquidation
Outcome
Applications by the Petitioner and Fergus Applebe refused.
Legal Topics
Liquidation Expenses, Priority of Claims, Winding Up, Liquidator Remuneration, Section 617 Companies Act 2014
Insolvency Company Law Liquidation Expenses Priority of Claims Winding Up Liquidator Remuneration Section 617 Companies Act 2014

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Parties

CTO Greenclean Environmental Solutions Limited (in liquidation)

Company

Myles Kirby

Official Liquidator

Louis J. O’Regan Limited

Petitioner/creditor

Fergus Applebe

Applicant/solicitor for Former Liquidator

Alan Fitzpatrick

Former Liquidator

Procedural Posture

High Court Application in Company Liquidation / Judgment on Applications for Priority of Expenses and Final Directions in Liquidation

Legal Issues

  1. 1 Whether the Petitioner is entitled to priority payment of its fees and expenses under s. 617(1)(a) of the Companies Act 2014 despite a Deed of Acknowledgment of Priority ceding priority to the liquidator;
  2. 2 Whether Fergus Applebe is entitled to reimbursement from the company for funds paid to a former liquidator under s. 617.

Ratio Decidendi

The Petitioner is not entitled to priority payment of its fees and expenses because it expressly ceded priority to the liquidator in the Deed of Acknowledgment of Priority. Fergus Applebe is not entitled to reimbursement from the company for the €27,675 paid to the former liquidator, as the obligation to pay was that of the Petitioner, not the company.

Court Disposition

Applications by the Petitioner and Fergus Applebe refused.

Orders

  • Petitioner’s application for priority payment of fees and expenses refused.
  • Fergus Applebe’s application for reimbursement of €27,675 refused.