National Irish Bank has undertaken before the Supreme Court not to seek enforcement of a court order directing the sale of lands in Co Waterford owned by a meat exporting company, Purcell Brothers. The bank's undertaking applies pending the outcome of legal proceedings in which NIB claims to be owed £6.4 million (€5.04 million) by Purcell. But the firm claims the debt was the result of unauthorised foreign currency speculation by the former managing director, Mr Gerry Purcell, which NIB "facilitated and encouraged" and that as a consequence, Purcell is not liable for the debt.
The bank has rejected that argument and insists Mr Purcell was an experienced businessman "who knew what he was doing". It also claims Mr Purcell had additional debts of more than £3 million due to foreign currency transactions with other financial institutions.
In the High Court last month, Mr Justice Kearns granted Purcell application to prevent NIB taking steps, which could include appointment of a receiver, to enforce securities relating to the debt. Despite what he described as the "somewhat dubious merits" of the case, the judge said he would grant an order restraining NIB from taking such steps pending the outcome of the main action between the parties.
But he instructed the firm to sell immediately 156 acres of farmland at Gracedieu on the outskirts of Waterford city which, the court was told, was valuable property which could greatly increase if rezoned for development purposes.
The High Court was told such a decision was due in February or March. Purcell appealed that part of the judge's order to the Supreme Court.
In that court yesterday, Mr Michael Collins SC said the appeal could be adjourned generally following an undertaking of the bank not to seek the sale of the Gracedieu lands pending the outcome of the main action between the parties.
Mr Kevin Feeney SC, for NIB, said the bank was prepared to give that undertaking in light of a tight time scale in the High Court for the hearing of the full action.
Mr Justice Murphy, presiding, said the court would adjourn the appeal generally on consent of both sides.
