A PETITION to wind up the company which leases Sachs Hotel in Dublin from Mr Hugh Tunney was brought by one of his employees with the ulterior motive of jeopardising other legal proceedings and to terminate the lease, it was alleged in the High Court yesterday.
The allegation was made on behalf of Mr Philip Smyth, a director of Genport Ltd, Harcourt Street, Dublin, who was opposing the petition.
The petition to wind up Genport was brought before Mr Justice McCracken by Ms Caroline Devine, an employee of Tunney Hotels, stated to be a creditor of Genport. The court was told that another creditor was Mr Tunney in the sum of £173,000. He was supporting the petition.
Ms Devine stated in the petition that Genport was incorporated in 1978 to carry on business mainly as hotel proprietors.
In November 1989, a High Court case was taken by Mr Smyth and Genport Ltd against Mr Tunney, his company Crotter Properties Ltd, Mr Gerald B Coulter and Ms Devine. Mr Smyth was unsuccessful.
In 1994, a certificate of taxation was obtained on Ms Devine's behalf and she said that as a result Genport was indebted to her for £52,363.88 plus interest of £21,037.36. No sum whatsoever had been paid. She said the company was insolvent and it was just and equitable that the company be wound up.
Mr Michael Collins SC, for Genport, in opposing the petition, said there was a Supreme Court appeal imminent. If it was successful, the cost order could not only be discharged but it could be awarded against the other parties. However, Genport would have been wound up along the way and there would be a terrible injustice.
In another High Court case proceeding at the moment, certain allegations had been made by Mr Smyth against Mr Tunney and Ms Devine. If these were found to be true, it would be a powerful disentitling factor against the petition.
Mr Collins said he was making the case that there was an ulterior motive and that was to interfere with litigation and the lease.
He said Genport's primary debt on its balance sheet was now the £52,000. It had paid all other debts.
Mr John McBratney, counsel for Ms Devine, said Mr Collins had not given one justification as to why the debt had not been paid.
Mr Justice McCracken reserved judgment.
