Re, C.H.A. Ltd ((in Liquidation))

• Jurisdiction: Ireland
• Judgment Date: 25 January 1999
• Docket Number: [1988 No.
• Date: 25 January 1999
• Court: High Court

( H.C.)

In re C.H.A. Ltd. (in liquidation)

- Priority of payments - Order for costs - Action against company for failure to pay post-liquidation rent - Whether costs payable in priority to costs and expenses of winding up - Companies Act, 1963 (No. 33), s. 244.

The High Court ordered that a company be wound up. It was in occupation of a premises as the tenant of the applicant and the liquidator continued to occupy the premises after the winding up. The applicant was given leave by the High Court to institute proceedings against the company for recovery of unpaid rent, in respect of the post liquidation occupation of the premises. In the Circuit Court, the applicant was awarded £5,000 and taxed costs. The sum of £2,000 lodged in court by the liquidator was paid out to the applicant in part discharge of this decree. The costs of the Circuit Court proceedings and witnesses' expenses were subsequently taxed at £2,644.34. The applicant claimed the balance of £3,000 as "costs, charges and expenses incurred in the winding up" within the meaning of s. 244 of the Companies Act, 1963, and claimed that the taxed costs should be paid in priority to all other claims in the liquidation. Held by the High Court (Laffoy J.), in ordering the payment of £2,644.34 in respect of taxed costs and adjourning the question of the balance of the Circuit Court award, 1, that where after the commencement of the winding up of a company, leave was given to bring an action against that company, if an order...