Business

Dispute between Eastern food business partners goes to mediation

Pair fell out with irreconcilable differences due to variety of reasons including Russia’s invasion of Ukraine

Photograph: Getty Images

Wed Feb 28 2024 - 18:32

A dispute between two partners of businesses that import and sell eastern European food products in Ireland is to go to mediation, the High Court has heard.

Alexandr Vakiy and Max Bulgakov had been partners, directors and shareholders of the highly successful Maxala Limited, which imports and distributes Eastern European food and EastDeli Limited, which is involved in the retail of said products.

However, the court heard that the pair have fallen out and their differences are irreconcilable due to a variety of reasons, including Russia’s invasion of Ukraine.

Mr Vakiy has launched proceedings under the 2014 Companies Act alleging that he has been oppressed as a shareholder of the companies by Mr Bulgakov.

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Mr Bulgakov denies any wrongdoing.

Last week, Mr Vakiy’s lawyers brought a fresh application seeking various orders from the court including an injunction against Mr Bulgakov restraining him from transferring money from the business’s bank accounts without 72 hours prior notice and an invoice to substantiate such a transfer.

Mr Vakiy also sought an order that he be provided with login credentials and passwords allowing him to fully operate the businesses’ digital platforms so they can participate in the Deposit Return Scheme.

Mr Justice Mark Sanfey was told on Wednesday that an agreement had been reached regarding the latest aspect of the dispute following talks between the respective party’s lawyers.

The judge was told that both sides were prepared to give various cross-undertakings.

It was agreed that Mr Vakiy, represented by Bernard Dunleavy SC, Niall Ó hUiginn BL and Bolger & Co solicitors, be given 72 hours’ notice of any payments out of the accounts, and access codes to the businesses’ online platforms.

It was further agreed that Mr Bulgakov, represented by Martin Hayden SC, Brian Walker BL and solicitor Daniel Hughes, would be given full access to the businesses’ bank accounts, including online facilities, so he can review all transactions.

The court was also told both parties have agreed that the dispute should go to mediation.

Mr Justice Sanfey welcomed the agreement in respect of the injunction application and adjourned the proceedings to a date in March.

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