Company in examinership secures injunction against Dublin barrister

A company in examinership has secured an interim High Court order freezing some €685,000 in assets of a Dublin barrister who was stated to have acted as financial adviser to the company.

It was alleged earlier yesterday that Patrick Russell, a qualified barrister of Steelstown, Rathcoole, Co Dublin, had produced a bogus receipt showing that money owed by Ardline Aircon Ltd to the Revenue Commissioners had been paid.

Yesterday afternoon, the court was told a solicitor for Ardline had just learned that a credit transfer slip from Mr Russell, indicating that €635,000 had been paid to the Revenue, had been faxed earlier that day to the solicitor.

Mark Sanfey SC, for the company, said a cheque had been sent by Mr Russell to the Revenue previously which had not cleared and his side wanted the interim freezing order to remain in place until it was established that the money had cleared.

His side would inform the court if the money cleared, a process he expected to take three or four days. Ms Justice Mary Laffoy left the injunction in place.

Ardline is part of the REL Refrigeration Group Ltd and Refrigeration Engineering Ltd of Hebron Industrial Estate, Kilkenny.

Earlier this week, the REL companies successfully applied to the High Court for the protection of an examiner despite opposition from the Revenue, which said the companies could still be operated as profitable concerns.

On Monday last, Mr Justice Peter Kelly was told the companies had shortfalls in funds totalling €4 million but have made arrangements with one of their biggest trade creditors to continue to receive supplies while under examinership. They have also sold property to help raise cash.

The injunction granted yesterday by Ms Justice Laffoy to Ardline, with a registered address at Foley Street, Dublin, prevents Mr Russell from reducing his assets below €685,000.

In seeking the order, Mr Sanfey said that, between April and June last, Mr Russell, who had acted as a financial adviser for the company, was given €635,000, which was to be paid as settlement of a tax liability to the Revenue.

This money was never paid to the Revenue, Mr Sanfey said. A receipt furnished by Mr Russell last August, which claimed that the Revenue had been paid, turned out to be "bogus". The company had also paid Mr Russell €50,000, plus VAT, for his services.

Mr Sanfey said a director of the company had been in contact earlier this week with Mr Russell seeking assurances that the money would be paid to the Revenue. Despite promises by Mr Russell, who operates out of a business address in Mullingar, Co Westmeath, nothing had been done as of yesterday morning and Mr Sanfey said his clients had become concerned.

In an affidavit to the court, Norbert O'Reilly, a director of the company, said it had concerns about Mr Russell leaving the State. Mr O'Reilly said Mr Russell had "resigned from the Law Library".

Ardline was formed in 2002 with the intention of securing the air conditioning agency rights in Ireland for Japanese manufacturing giant Hitachi.