A company which is the tenant of Sachs Hotel on Morehampton Road, Dublin has been given 14 days by the High Court to pay arrears of some €1 million in rent and insurance due to the hotel owners. Otherwise, Genport Ltd cannot remain in occupation of the premises, the court said.
Ms Justice Mary Finlay Geoghegan said yesterday the money had to be paid within the 14-day period to Crofter Properties Ltd if a stay is to be put on a court order restraining Genport from continuing as occupiers of the hotel.
The judge said she believed Genport should be permitted to remain in occupation provided the relevant payments were made but, if there was any default, Crofter should not have to engage in any further litigation to terminate such occupation.
She had earlier noted that both companies had been involved in litigation with each other for more than 10 years. The form of order she proposed making would restrain Genport from continuing in occupation of the hotel under Section 28 of the Landlord and Tenant Act 1980, but there would be a stay on the order provided there was compliance with conditions relating to meeting rent, rates and insurance payments.
If there was a failure by Genport to comply with any one of the conditions on the specified date, the stay would be automatically at an end.
In her judgment, Ms Justice Finlay Geoghegan said Genport was in occupation of the hotel under a 21-year lease, which expired on July 31st, 2001.
On that same day Genport served a notice of intention to claim relief under the Landlord and Tenant Act 1980.
On January 18th, 2002, Genport issued a Landlord and Tenant Civil Bill claiming new tenancy in the premises and was since then in occupation under Section 18 of the 1980 Act.
Rent payable under the lease was €141,634 per quarter and the last rent paid by Genport to Crofter prior to the date of hearing was a portion of the rent due on May 1st, 2004, leaving outstanding a sum of €45,421 due on that date. No subsequent rent had been paid.
On May 10th, 2005 Crofter issued proceedings claiming possession of the premises. The amount then alleged to be due for rent was €611,957 and €102,000 for insurance.
In 2005, Sachs Hotel was closed down and boarded up. On June 17th, 2005 Crofter issued a further set of proceedings, claiming an injunction restraining Genport from carrying out building works in the premises and other reliefs. An undertaking was given by Genport to refrain, pending the trial of the action, from carrying out any building works.