Ruby Property Company Ltd. v. Kilty [1999] IEHC 50 (1st December, 1999)

Ruby Property Company Ltd. v. Kilty [1999] IEHC 50 (1st December, 1999)

The claim against the Receiver for sale at an undervalue cannot be struck out as unsustainable on affidavit evidence, as there is a triable issue whether the Receiver breached his duty under section 316A Companies Act 1963. However, all claims challenging the Receiver's right to sell, the validity of the...

Source-derived case information.

Citation
[1999] IEHC 50
Parties
Plaintiff: First Plaintiff (Company); Plaintiff: Second Plaintiff (Deceased); Plaintiff: Third Plaintiff (Deceased); Defendant: First Defendant (Receiver); Defendant: Second Defendant (Superquinn)
Jurisdiction
Ireland
Procedural Posture
Civil / High Court Motion to Dismiss/strike Out Claim
Outcome
Claim against Second Defendant struck out; claim against Receiver for sale at undervalue may proceed; all other claims struck out.
Legal Topics
Receivership, Sale at Undervalue, Inherent Jurisdiction to Strike Out, Section 31 Companies Act 1990, Section 316 a Companies Act 1963, Bona Fide Purchaser, Delay and Want of Prosecution
Property Law Company Law Civil Procedure Receivership Sale at Undervalue Inherent Jurisdiction to Strike Out Section 31 Companies Act 1990 Section 316 a Companies Act 1963 +2 more

Source-derived case record

Summary, issues, holding and outcome

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Parties

First Plaintiff (Company)

Plaintiff

Second Plaintiff (Deceased)

Plaintiff

Third Plaintiff (Deceased)

Plaintiff

First Defendant (Receiver)

Defendant

Second Defendant (Superquinn)

Defendant

Procedural Posture

Civil / High Court Motion to Dismiss/strike Out Claim

Legal Issues

  1. 1 Whether the plaintiffs' claim should be struck out for want of prosecution or as having no reasonable prospect of success
  2. 2 Whether the appointment of the Receiver was invalid under section 31 Companies Act 1990
  3. 3 Whether the Receiver sold the property at an undervalue in breach of section 316A Companies Act 1963

Ratio Decidendi

The claim against the Receiver for sale at an undervalue cannot be struck out as unsustainable on affidavit evidence, as there is a triable issue whether the Receiver breached his duty under section 316A Companies Act 1963. However, all claims challenging the Receiver's right to sell, the validity of the appointment, and all claims against the Second Defendant must fail, as the Second Defendant is a bona fide purchaser for value and the debenture and appointment were valid.

Court Disposition

Claim against Second Defendant struck out; claim against Receiver for sale at undervalue may proceed; all other claims struck out.

Orders

  • All claims against Second Defendant struck out.
  • All claims challenging Receiver's right to sell struck out.