Businessman in legal challenge over promissory notes

A BUSINESSMAN has initiated High Court proceedings aimed at preventing the Government from paying out some €30 billion on foot…

A BUSINESSMAN has initiated High Court proceedings aimed at preventing the Government from paying out some €30 billion on foot of promissory notes issued to several financial institutions.

David Hall claims the notes are unlawful on various grounds, including that the Dáil was never consulted on what he says was “a huge promise”.

Mr Hall, College Grove, Castleknock, Dublin – a founder member of the New Beginnings group of business people and lawyers – said he has, for some time, had “grave reservations about the manner and way the public finances of the country have been run”. The benefit of the promissory notes scheme or “trick”, done with the alleged connivance of the Central Bank and perhaps the European Central Bank, was that bondholders got paid and no European bank reneged on its debts, he said in an affidavit.

The Irish people, having never been consulted about this and in circumstances where its representatives were bypassed, were being asked to honour a deal made in flagrant breach of the Constitution, with no democratic legitimacy and in breach of the Treaty on the Functioning of the EU, he said.

READ MORE

He is seeking leave to bring judicial review proceedings contending the issuing of the promissory notes to Anglo Irish Bank, Educational Building Society and Irish Nationwide Building Society was unlawful.

He claims the notes are void on grounds including the decision to issue them was never approved by the elected members of the Dáil. He also contends the provisions of two Acts under which the notes were issued are unconstitutional.

The proceedings came before Mr Justice Michael Peart yesterday, who granted Mr Hall’s lawyers leave to serve short notice of them on various State parties, and returned the leave application to tomorrow.