A-Data Ltd v McMahon (Approved) [2020] IEHC 440 (08 June 2020)

A-Data Ltd v McMahon (Approved) [2020] IEHC 440 (08 June 2020)

Revenue Commissioners do not have a proprietary or preferential interest in the attached funds at the time of the application, as the respondent has not yet been adjudicated bankrupt. Therefore, they do not come within the terms of O. 45, r. 5 RSC and are not entitled to be heard in opposition to making the garnishee order absolute. The court must decide the application based on the current facts, not on potential future events such as bankruptcy.

Citation
[2020] IEHC 440
Parties
Applicant: A-Data Limited; Respondent: George McMahon; Garnishee: Claire Kelly trading as Kildare Audit and Accountancy Services; Third Party: Revenue Commissioners
Jurisdiction
Ireland
Judgment Date
08 June 2020
Procedural Posture
Application for Order of Garnishee Absolute / Hearing on Whether to Make Garnishee Order Absolute
Outcome
Application by Revenue Commissioners to be heard in garnishee proceedings refused; applicant's application to make garnishee order absolute to proceed.
Legal Topics
Garnishee Proceedings, Preferential Creditors, Bankruptcy, Personal Insolvency, Order 45 Rule 5 RSC
Civil Procedure Insolvency Law Enforcement of Judgments Garnishee Proceedings Preferential Creditors Bankruptcy Personal Insolvency Order 45 Rule 5 RSC

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Parties

A-Data Limited

Applicant

George McMahon

Respondent

Claire Kelly trading as Kildare Audit and Accountancy Services

Garnishee

Revenue Commissioners

Third Party

Procedural Posture

Application for Order of Garnishee Absolute / Hearing on Whether to Make Garnishee Order Absolute

Legal Issues

  1. 1 Whether Revenue Commissioners have standing to be heard in garnishee proceedings under O. 45, r. 5 RSC
  2. 2 Whether Revenue Commissioners have a proprietary or preferential interest in the attached funds prior to adjudication of bankruptcy
  3. 3 Whether the court should exercise discretion to refuse making the garnishee order absolute due to prejudice to other creditors

Ratio Decidendi

Revenue Commissioners do not have a proprietary or preferential interest in the attached funds at the time of the application, as the respondent has not yet been adjudicated bankrupt. Therefore, they do not come within the terms of O. 45, r. 5 RSC and are not entitled to be heard in opposition to making the garnishee order absolute. The court must decide the application based on the current facts, not on potential future events such as bankruptcy.

Court Disposition

Application by Revenue Commissioners to be heard in garnishee proceedings refused; applicant's application to make garnishee order absolute to proceed.

Orders

  • Revenue Commissioners not entitled to be heard in opposition to making the garnishee order absolute.
  • Court will now hear the applicant's application to make the garnishee order absolute.