Dubai firm loses Quinn stay case
An application by a Dubai-based firm for a stay on legal proceedings against it arising out of its acquisition of property in India from companies controlled by members of the Quinn family has been dismissed by the High Court.
Mecon FZE wants to be taken out of proceedings brought by the Irish Bank Resolution Corporation (IBRC) against Quinn family members and several companies, including Mecon, over assets which the bank says are part of the Quinn international property group.
Mecon claims that it legitimately acquired a property, known as Hi Tech Park in Hyderabad, India, at “arm’s length” from a complex entity controlled by the Quinn family. The property is claimed to be worth €60 million.
Mecon, whose directors are Indian residents, sought a stay in relation to the Irish proceedings involving it on grounds including that the case should be heard in India.
IBRC, it claims, has initiated similar proceedings against Mecon in India.
As the Indian proceedings had been brought first in time, it, rather than Ireland was the appropriate forum where the action should be heard, Mecon claimed. Any stay would remain in place pending the outcome of the case in India.
In opposing the motion, IBRC argued that the matter should be heard in Ireland on grounds including that they claim the share transfer involving the Hyderabad property is part of a wider alleged conspiracy involving members of the Quinn family of which Mecon is part.
IBRC also claimed that, under EU regulations, the Irish courts had no discretion but to hear its claim against Mecon.