The High Court has granted a temporary order restraining a businessman from interfering with a contract to provide accommodation to asylum seekers at three properties.
CRM Properties Limited alleges it has paid €1.47 million to Hamid Butt since it agreed with the Department of Integration in May 2022 to house international protection applicants at premises in Co Cork and Co Cavan.
The payments come as part of an agreement for Mr Butt to get a specified percentage of the gross income CRM Properties receives from the department, the company says. It says Mr Butt acted as agent for his sister, who is the registered owner of the Cavan property, while he was the lessee of the Cork properties.
In a sworn statement, the firm’s director, Donal O’Brien, said an issue had arisen when, in late summer last year, the department reduced the payment per room but, due to an alleged “administrative oversight”, CRM did not reduce payments to Mr Butt.
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CRM Properties, which has an address at South Mall, Cork city, sought to offset an €84,000 overpayment against amounts due as part of the profit-share agreement, but Mr Butt claims he is owed money and the payments should not be reduced, said Mr O’Brien.
Mr Butt became “extremely irate” in messages, said Mr O’Brien, including asserting he will “get my 75k back from properties or more once I’ll kick you out but u will loose your 125k a month for nothing over your stupidity” (sic).
He also threatened to “lock down all my properties” and stated an intention to enter his own contract with the department for the provision of asylum seeker accommodation, said Mr O’Brien.
This would be a “direct interference” with the contractual relationship held between CRM Properties and Mr Butt, he added.
The case came before the court on Thursday on an ex-parte basis, while only CRM Properties was in court.
Séamus Clarke SC, with Cian Kelly, said there were 84 residents at the three properties managed by his client.
He said he understood Mr Butt, a Pakistani national, was currently in Dubai but was due to return to Ireland. The company is afraid he will see through the threats he made regarding the contract with the department, he said.
Mr Justice David Nolan was satisfied Mr Butt, of Millbank Road, Kinsale, Co Cork, had been notified about the company’s intention to issue its court case.
Mr Butt failed to respond through his solicitor to the company’s request for him to undertake not to interfere with the contract it holds with the Department of Integration, the judge said.
In granting the order ex parte, he considered the potential for “very serious implications” for the occupants of the buildings, the plaintiff company and the State.
The judge’s order is due to remain in place until the case returns to court next Friday.
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