A CHALLENGE to the constitutionality of the State's bankruptcy laws is being brought by a woman who is being pursued for a debt of more than €1 million, the High Court has heard.
The intention to bring the challenge was disclosed yesterday in bankruptcy proceedings brought against Darina Heavey, Saval Park Road, Dalkey, Co Dublin.
Ms Heavey, a former senior investment manager with Anglo Irish Bank, had guaranteed a debt for her company, Sorrento Structuring Ltd, along with three other directors.
The debt had not been paid and Irish Edible Oils Ltd, to whom it was owed, petitioned to have Ms Heavey declared bankrupt after obtaining a judgment against her and her three colleagues for €1 million in March 2010.
With interest, the sum owed was about €1.185 million, the company said.
Yesterday, former attorney general John Rogers SC, representing Ms Heavey, said his client intended to bring a challenge to the constitutionality of sections of the bankruptcy laws. It would be argued that restrictions placed on those declared bankrupt were disproportionate, counsel said.
The constitutional challenge by Ms Heavey, a single mother of two, was separate from the proceedings before the court, he added.
Different legal teams had been engaged and he was appearing before the court as a matter of courtesy.
Counsel for Ms Heavey requested that the bankruptcy case be adjourned until the constitutional challenge was settled.
But Ms Justice Elizabeth Dunne said she had to proceed on the basis that the legislation was constitutional until proven otherwise and she could not adjourn the case on that basis. She did agree, however, to adjourn the case until mid-July for a settlement offer to be further considered by the creditor.
The court had been told the elderly parents of one of the other directors, Ken Healy, had agreed to pay €150,000 towards their son's share of the debt.
Counsel for the parents said they were doing this on behalf of their son "in the hopes he won't be adjudicated bankrupt at a later stage". He expressed concern and said he believed his clients were "throwing good money after bad".
Ms Justice Dunne said she was also concerned by the pledge being given by the elderly couple.
She directed that the couple "put their solicitor in funds" to the value of €150,000, but that the money should not be paid to the creditor. Instead, the solicitor was to hold the funds until a deal had been agreed between the creditor and all of the guarantors.
If the deal was not acceptable to all the parties, she did not see why the parents should make the payment, the judge said.