The legal action was initiated against Turn Key Outlets which operates the Hi Way
LEGAL proceedings against the company which operates the Hi War bar and restaurant in Dooradoyle have been struck out after a judge ruled they were unlawful and before the wrong court.
The action against Turn Key Outlets Ltd was initiated by Kieran Wallace and Eamon Richardson of KPMG who were appointed joint receivers of the property in June 2012.
According to court documents, Turn Key Outlets, which has a registered address at Glen Dara, Kilteragh entered into a lease agreement with the owners of the premises in July 2010 – prior to the appointment of the joint receivers.
The company, which has two local directors, was set up “to carry on the business of a restaurant, cafe, bar, delicatessen, bistro, diner, takeaway restaurant and licenced premises”.
On Tuesday, Judge Gerald Keys granted an appeal against the earlier decision of the county registrar, Pat Wallace, to transfer the possession proceedings to the High Court.
Emer Meeneghan BL, representing the joint receivers, told Limerick Circuit Court the business which is being operated by the defendant company is lucrative and there are debts of around €78,000 owed to her clients.
“There are significant monies due and outstanding,” she said.
Pat Barriscale BL, who moved the appeal on behalf of Turn Key Outlets, submitted that neither the country registrar or the Circuit Court had the power to deal with the matter given the rateable valuation of the property.
He said proceedings relating to commercial properties which have a rateable valuation of more than €253 (per square metre) can only be dealt with in the High Court.
“The Circuit Court can only deal with cases where the rateable valuation is €253 or less,” he said adding that the rateable valuation on the property is €317.
“You can’t make any order at all in relation to this property. It is outside of your jurisdiction,” he submitted.
Opposing the appeal, Ms Meeneghan said some monies were outstanding when her clients were appointed as joint receivers of the proprty and that further arreras have accrued since January 2014.
She told the court her clients were “not aware” of the rateable valuation when the proceedings were initiated and she conceded an error had been made.
Ms Meeneghan agreed that given the rateable valuation, the proceedings should have been initiated in the High Court and not in the Circuit Court.
Having considered the matter, Judge Keys said the joint receivers should have been aware of the rateable value on the property and that in the circumstances the matter should not have been transferred to the High Court.
After granting the appeal and striking out the proceedings, the judge awarded costs to Turn Key Outlets.
There was loud clapping from the public gallery when the decision was handed down.