Coombe Importers Ltd., Re [1998] IEHC 12; [1999] 1 IR 492 (28th January, 1998)

Coombe Importers Ltd., Re [1998] IEHC 12; [1999] 1 IR 492 (28th January, 1998)

Super-preferential status is only afforded to sums actually deducted by the employer in respect of employment contributions; estimated sums for PRSI not actually deducted do not qualify. Section 16(2)(b) of the 1993 Act cannot be applied retrospectively as it has no corresponding provision in the 1981 Act.

Citation
[1998] IEHC 12
Parties
Official Liquidator: Thomas Grace; Claimant: Revenue Commissioners; Company in Liquidation: Coombe Importers Limited
Jurisdiction
Ireland
Procedural Posture
Application for Directions in Liquidation / High Court Determination of Claim Status
Outcome
Claim for super-preferential status rejected; PRSI sum only entitled to preferential status.
Legal Topics
Preferential and Super Preferential Claims, Employment Contributions, Liquidation Procedures
Insolvency Company Law Social Welfare Law Preferential and Super Preferential Claims Employment Contributions Liquidation Procedures

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Parties

Thomas Grace

Official Liquidator

Revenue Commissioners

Claimant

Coombe Importers Limited

Company in Liquidation

Procedural Posture

Application for Directions in Liquidation / High Court Determination of Claim Status

Legal Issues

  1. 1 Whether estimated PRSI sums are entitled to super-preferential status under Section 120 of the Social Welfare (Consolidation) Act, 1981 or only preferential status under Section 285 of the Companies Act, 1963

Ratio Decidendi

Super-preferential status is only afforded to sums actually deducted by the employer in respect of employment contributions; estimated sums for PRSI not actually deducted do not qualify. Section 16(2)(b) of the 1993 Act cannot be applied retrospectively as it has no corresponding provision in the 1981 Act.

Court Disposition

Claim for super-preferential status rejected; PRSI sum only entitled to preferential status.

Orders

  • PRSI sum assessed at £12,811.03 is not super-preferential; it is to be treated as a preferential claim under Section 285 of the Companies Act, 1963.