Eircell will ask court to quash Meridian ruling

Eircell will ask the High Court tomorrow to lift an order preventing it from ending a mobile phone supply service to 20,000 customers of Meridian Communications Ltd, which trades as Imagine. Eircell claims to be owed some £6.7 million (€8.5 million) by Meridian.

Yesterday, Mr Rory Brady SC, for Eircell, said Meridian was seeking to get by the back door what it had failed to get by the front door when the courts said it was not entitled to renew a discount agreement with Eircell.

Last Friday, Mr Justice Herbert granted the interim injunction to Meridian. The injunction, which was returned to yesterday, also prevented Eircell from presenting, without the court's permission, a petition to the court to wind up Meridian.

At Friday's hearing, Mr Sean Bolger, chairman of Meridian, alleged Eircell was attempting to destroy Meridian's business. He also claimed negotiations were taking place to sell Meridian's subscriber base to a competitor. This asset, he said, was worth not less than £10 million.

High Court proceedings which had been at hearing for 95 days over a period of a year before Mr Justice O'Higgins ended recently when that judge rejected Meridian's claim to be entitled to have a discount agreement renewed as a matter of contract.

Mr Justice O'Higgins adjourned the making of orders in the case consequential on his judgment until today.

When the injunction proceedings came before Mr Justice Lavan yesterday, Mr Richard Nesbitt SC, for Meridian, sought an adjournment.

Counsel said his client had received an affidavit from Eircell containing "far-reaching allegations" which included suggestions that Meridian's claim was unmeritorious.

His client would be appealing to the Supreme Court against the findings of Mr Justice O'Higgins and, in the meantime, was taking orderly steps to discontinue its service to its clients which it anticipated would be in place by the end of May.

Mr Brady said Eircell maintained Meridian had been granted its injunction last Friday on the basis of "serious non-disclosure" of certain facts - one of them being that Meridian owed Eircell £6.7 million for services it had already received.

The injunction had not been to ensure a continuation of service to 20,000 Meridian customers but to "grab a window of opportunity" to sell the Meridian business to a third party, he contended.

Mr Nesbitt said Meridian had claims for compensation against Eircell.

At the end of the day, there would be more monies due to Meridian than to Eircell, he said.