Challenge brought against appointment of liquidator to Eden College

An application seeking the removal of the liquidator appointed to a third-level college whose closure left hundreds of students "high and dry" has come before the High Court.

Eden College, based at Dublin's Burgh Quay, ceased trading in late April.

The college blamed its closure on cash flow difficulties following its suspension, pending an investigation, from a register of approved colleges by Irish immigration authorities.

About 1,200 students, who are mainly non-EU nationals, were enrolled at the college. Eden’s directors are Fakir Mohammad Zakir Hossain and his wife Hasina Akter.

Following a creditors meeting on May 23rd, chartered accountant Anthony Fitzpatrick, who was nominated by the company’s owners, was elected as liquidator of Eden Further Education Ltd.

Thousands owing

A group of Eden’s students, who claim they are collectively owed hundreds of thousands of euro for tuition they never received, are unhappy with the appointment. They, along with other creditors, supported the appointment of another insolvency practitioner, Declan De Lacy, as liquidator.

He lost out to Mr Fitzpatrick following a vote of creditors. While no allegations of wrongdoing are made against Mr Fitzpatrick, the students say the ballot was defective and should be set aside.

It is claimed that when conducting the vote Mr Hossain, who chaired the creditor’s meeting, unlawfully and irrationally disallowed certain votes to be counted. It is also alleged Mr Hossain allowed other votes that were open to significant doubt to be counted.

In proceedings brought by student Keitumetse Motsumi of North Circular Road Dublin, the High Court has been asked to remove Mr Fitzpatrick as liquidator and that he be replaced by Mr De Lacy. The action is being supported by other former students.