O'Brien v Farrell (Approved)

1.������ Before the court is an application to have a husband and wife adjudicated bankrupt.� I will outline the facts as they affect the husband as that gives a representative overview of the state of play.

2.������ The dispute arises from a breakdown in relations between four shareholders in a company called Business Mobile Security Services Limited.� The debtors hold 58% of the shares and the petition is by one of the minority shareholders.� The other minority shareholder has apparently since died.

3.������ The company began from a modest base in 2007 and had considerably expanded by 2012, obtaining the contract for security for the Corrib Oil pipeline.� On 13th February, 2017 Mr. Cian Ferriter S.C. sitting as an arbitrator made an award in favour of the petitioner.� He then made an award of costs on 29th March, 2017.

4.������ In proceedings to enforce the award [2017 No. 158 MCA], McGovern J. gave judgment for the petitioner on 27th June, 2017 for �315,000.� The petitioner has a judgment mortgage over the debtors� property (Folio 18910F) in Co. Kildare.� The value of that asset was �385,000 at the time of the petition.� Ulster Bank holds the first legal charge in the amount of �235,000 and the petitioner ranks equally with another joint creditor for �286,000.

5.������ On 24th November, 2017 a first protective certificate was issued in Trim Circuit Court.� On 5th February, 2018 a first bankruptcy summons issued.� However, in a judgment in O�Brien v. Farrell [2018] IEHC 524 (Unreported, High Court, 30th July, 2018), Costello J. held that the creditor was not entitled to issue the bankruptcy summons because the protective certificate had been renewed at the point in time when it issued.