Harley Mechanical Services Ltd & The Companies Act [2018] IEHC 80 (20 February 2018)

Harley Mechanical Services Ltd & The Companies Act [2018] IEHC 80 (20 February 2018)

The court has no jurisdiction, either under the Companies Act 2014 or in its inherent jurisdiction, to deem unpaid Revenue liabilities as examinership expenses after liquidation has commenced, as only the examiner may certify such expenses during the protection period, and the statutory scheme does not permit the...

Source-derived case information.

Citation
[2018] IEHC 80
Parties
Company/applicant: Harley Mechanical Services Limited; Examiner/liquidator: Aengus Burns; Respondent: Revenue Commissioners
Jurisdiction
Ireland
Judgment Date
20 February 2018
Procedural Posture
Company Law/examinership/liquidation / Application to Set Aside Part of a Previous Order in Liquidation Following Examinership
Outcome
Application granted; impugned order set aside.
Legal Topics
Examinership, Liquidation, Priority of Expenses, Court Undertakings, Tax Liabilities
Company Law Insolvency Law Examinership Liquidation Priority of Expenses Court Undertakings Tax Liabilities

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Parties

Harley Mechanical Services Limited

Company/applicant

Aengus Burns

Examiner/liquidator

Revenue Commissioners

Respondent

Procedural Posture

Company Law/examinership/liquidation / Application to Set Aside Part of a Previous Order in Liquidation Following Examinership

Legal Issues

  1. 1 Whether the court had jurisdiction to deem unpaid tax as an expense in the examinership after liquidation had commenced
  2. 2 Whether breach of an undertaking to pay tax during examinership alters the priority of Revenue claims
  3. 3 Whether the court can exercise inherent jurisdiction to elevate Revenue liabilities to examinership expenses

Ratio Decidendi

The court has no jurisdiction, either under the Companies Act 2014 or in its inherent jurisdiction, to deem unpaid Revenue liabilities as examinership expenses after liquidation has commenced, as only the examiner may certify such expenses during the protection period, and the statutory scheme does not permit the court to alter priorities post-liquidation.

Court Disposition

Application granted; impugned order set aside.

Orders

  • That part of the order made on 5th September 2017 deeming the July 2017 P30 tax as an examinership expense is set aside.