A company that says it bought property in India allegedly controlled by jailed bankrupt businessman Seán Quinn and members of his family wants the Commercial Court to rule that proceedings over the matter should be heard in India rather than Ireland.
Mr Justice George Birmingham gave leave yesterday to Dublin-based Mecon FZE to apply on Monday to be taken out of the action by IBRC, the Irish Bank Resolution Corporation, against Quinn family members and several companies, including Mecon, over assets which the bank contends are part of the Quinn international property group (IPG).
Mecon is among several international companies against whom freezing orders were made by the courts here earlier this year as part of IBRC’s efforts to recover multi-million euro assets of the IPG.
In its action, IBRC contends the Quinns and the international companies hold property and any funds transferred since April 14th last year from Mach Soft Tech Pvt Ltd (MST) on trust for the bank.
IBRC alleges Mecon unlawfully participated in a share transfer, conspired to transfer shares in MST at an undervalue and conspired to wrongly convert or misappropriate shares in MST.
It further claims Mecon conspired to put shares beyond IBRC’s reach. IBRC argues it is entitled to trace the shares in MST or claim the value of the shares against the Quinns and the companies.
Jarlath Ryan, for Mecon, told Mr Justice Birmingham yesterday the company wanted the freezing orders set aside as the matter was already being litigated in India.
Mecon bought the assets involved – property in Hyderabad, India – at “arm’s length” from a complex entity controlled by the Quinn family, Mr Ryan said. Despite the matter being litigated in India, IBRC had joined Mecon in the proceedings here.
The Indian courts, he argued, were the most appropriate forum to deal with the matter as proceedings were already in being there.
In an affidavit for Mecon, Michael Waechter said an IBRC-appointed receiver for Quinn Logistics Sweden had last December begun proceedings in the Indian courts against MST, other companies and several individuals, including members of the Quinn family. The receiver had sought orders in India similar to those being sought here, Mr Waechter said.
