A Co Monaghan company said to have debts of more than £600,000 was wound up by order of the High Court yesterday. A receiver was also appointed to Arrow Equipment Ltd.

The company, with a registered office at Dublin Street, Monaghan, was involved in wholesale and distribution of office equipment. It was said to be in debt to Canon (Irl) Business Equipment Ltd of Arenda Road, Sandyford Industrial Estate, Dublin, for £299,868 for goods sold and delivered.

It was also said to be in debt to a further 11 companies to the extent of £301,869. Among these 11, the largest debt owed - £165,000 - was to Osmosis Ireland Ltd of Swords Business Park, Co. Dublin. The court was told there had been a total breakdown between two directors of Arrow, Ms Noreen Clerkin and Mr Gabriel Mullen, and that Mr Mullen had left the company. Each had accused the other of misappropriating company funds and property.

Canon Irl director Mr Joe Cunniam said in an affidavit that he was informed by Mr Mullen on May 18th last that potentially £500,000 was missing from company funds. On May 24th, Ms Clerkin claimed £300,000 worth of computer stock had been misappropriated by Mr Mullen.

Mr Cunniam said he was concerned that Arrow may have been used as an instrument of fraud in allowing monies to be paid into it without any supporting documentation in circumstances where monies later went missing from the company.

He believed goods supplied by Canon to Arrow were transferred to a company in Northern Ireland. It appeared these may have been transferred at an under value in order to allow these goods to be distributed in Northern Ireland and England without first paying VAT in respect of the goods in question.

Mr Justice O'Sullivan made an order winding up Arrow and also directed that Mr David Young, of Ernst and Young, auditors and accountants, Harcourt Street, Dublin, be appointed as official liquidator to the company. He further directed that statements of affairs be filed by both Ms Clerkin and Mr Mullen.