The tenants of a hotel in Co Wexford have secured a High Court injunction preventing Wexford County Council from turning off their water supply over a disputed debt of €140,000.
Rusticford Ltd, which took over the tenancy of Millrace Hotel, Bunclody earlier this month, said the council had claimed it was owed more than €140,000 in charges from the hotel.
Rusticford denies liability for that debt, contending that it is owed by the previous tenant of the hotel, the Charlton Hotel Group.
Yesterday evening, Mr Justice Roderick Murphy said, from the evidence before him, he was satisfied to grant a temporary injunction, returnable to later this week, restraining the council from cutting off the water.
Moving the ex parte (one side only represented) application earlier, Rossa Fanning, for Rusticford, said if the council went ahead with its threat to cut off the water supply the business would have to close, staff employed would lose their jobs and the hotel’s business reputation would be considerably damaged.
Counsel said receivers appointed over the hotel owners’ assets some months ago had created Rusticford Ltd, a special purpose vehicle, to act as the hotel’s tenants while another company was engaged to manage the hotel.
While the council had seemed to accept that Rusticford did not owe the sums claimed, it had told the company it intended to cut off the hotel’s water supply if the debt was not paid, Mr Fanning said.
The council had also said that if €10,000 was paid on account it would postpone its decision to cut off the supply.
Rusticford could not get any assurances the €10,000 sum would not go towards the historic debt which Rusticford insists it is not liable for, and it had therefore not paid that sum.