Macks Bakeries Ltd., Re. [2003] IEHC 2 (9 April 2003)

Macks Bakeries Ltd., Re. [2003] IEHC 2 (9 April 2003)

Section 244(A) of the Companies Act, 1963, as amended, is clear and unambiguous in prohibiting the assertion of a solicitor's common law retaining lien against a liquidator in a creditors' voluntary winding up; only consensual securities such as mortgages, charges, or pledges are preserved.

Citation
[2003] IEHC 2
Parties
Applicants: Macks Bakeries Limited (in voluntary liquidation) and James Luby; Respondent: Patrick O'Connor practising as P O'Connor & Sons Solicitors
Jurisdiction
Ireland
Judgment Date
09 April 2003
Procedural Posture
Company Law Application / High Court Judgment on Application Under Section 244(a) of the Companies Act, 1963
Outcome
Declaration and order granted in favour of the applicants; respondent cannot retain title documents as security for fees.
Legal Topics
Solicitor's Lien, Liquidation, Statutory Interpretation, Secured Creditors
Insolvency Company Law Solicitor's Lien Liquidation Statutory Interpretation Secured Creditors

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Parties

Macks Bakeries Limited (in voluntary liquidation) and James Luby

Applicants

Patrick O'Connor practising as P O'Connor & Sons Solicitors

Respondent

Procedural Posture

Company Law Application / High Court Judgment on Application Under Section 244(a) of the Companies Act, 1963

Legal Issues

  1. 1 Whether a solicitor's common law retaining lien can be asserted against a liquidator in a creditors' voluntary winding up under section 244(A) of the Companies Act, 1963

Ratio Decidendi

Section 244(A) of the Companies Act, 1963, as amended, is clear and unambiguous in prohibiting the assertion of a solicitor's common law retaining lien against a liquidator in a creditors' voluntary winding up; only consensual securities such as mortgages, charges, or pledges are preserved.

Court Disposition

Declaration and order granted in favour of the applicants; respondent cannot retain title documents as security for fees.

Orders

  • Respondent solicitors must deliver up title documents of the company in liquidation to the liquidator.