Proceedings against racehorse trainer Mulhern struck out

The Director of Corporate Enforcement (DCE) has told the High Court he is withdrawing District Court proceedings against racehorse trainer and businessman John Mulhern for alleged breaches of provisions of the Companies Act 1990 related to directors' loans.

Mr Mulhern had initiated a High Court challenge in May 2005 to the director's decision to bring the prosecution, alleging he was being "unfairly treated" and "selectively prosecuted". However, given the director's decision not to proceed, the judicial review case was also being withdrawn, Brian Murray SC, for Mr Mulhern, told Mr Justice Iarfhlaith O'Neill yesterday.

The developments were announced when the judicial review action was due to come before the judge via a motion for discovery of documents. On the application of Mr Murray, and with the consent of George Birmingham SC, for the DCE, the judge struck out both the motion and the proceedings and also struck out a related set of proceedings involving the DCE and a district judge.

The second set of proceedings arose after the District Court ordered in April 2005 that Mr Mulhern be furnished with reasons for the decision to prosecute him. The director brought a judicial review challenge to the District Court's order.

Mr Mulhern in an affidavit said he had been subject to the "most extraordinary and oppressive treatment", including having his property searched and documents seized and being detained for 10 hours in a police station. He said it appeared the investigation arose from a newspaper article of certain transactions involving himself and two companies of which he was a director and that he had been "singled out".