In the matter of Bedford Hotel Limited (In administration) in the matter of the Insolvency (Northern Ireland) Order 1989
| Jurisdiction | Northern Ireland |
| Judge | McBride J |
| Neutral Citation | [2022] NICh 10 |
| Court | Chancery Division (Northern Ireland) |
| Date | 14 June 2022 |
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Neutral Citation No: [2022] NICh 10
Judgment: approved by the court for handing down
(subject to editorial corrections)*
Ref: McB11844
ICOS No: 2021/40915
Delivered: 14/06/2022
IN THE HIGH COURT OF JUSTICE IN NORTHERN IRELAND
___________
CHANCERY DIVISION
(COMPANIES’ INSOLVENCY)
___________
IN THE MATTER OF BEDFORD HOTEL LIMITED (IN ADMINISTRATION)
AND IN THE MATTER OF THE INSOLVENCY (NORTHERN IRELAND)
ORDER 1989
___________
Mr Dunlop QC with Mr Fletcher of counsel (instructed by A&L Goodbody Solicitors) for
the Applicants
Mr Colmer QC with Mr Atchison of counsel (instructed by TLT Solicitors) for Lyell
Trading Limited
Mr Harvey, solicitor for Mr and Mrs Foster
McBRIDE J
Application
[1] By summons dated 12 May 2021, Michael Lennon and Matthew Ingram, as
joint administrators of Bedford Hotel Ltd, seek an order of the court pursuant to
paragraph 72(1) of Schedule B1 of the Insolvency (Northern Ireland) Order 1989 (as
amended) (“the 1989 Order”) permitting the sale of the property known as the
George Best Hotel, Scottish Mutual Building, Donegall Square South, Belfast,
BT1 6JH which is comprised within folios AN159470 and AN159401, Co Antrim
(“the Property”) as if it were not subject to any security and an order as to the
application of the sale proceeds.
Representation of interested parties
[2] The applicants were represented by Mr Dunlop QC and Mr Fletcher of
counsel.
[3] The proceedings were served on Lyell Trading Limited (“the lender”). The
lender was represented by Mr Colmer QC and Mr Atchison of counsel.
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[4] As appears from the affidavit evidence sworn by Mr Corbett, solicitor, on 29
June 2021, 24 September 2021 and 5 October 2021 there are a large number of
individuals who separately made investments in the company and they are
collectively known as the “bedroom investors.”
[5] On 21 May 2021 and 24 September 2021 the joint administrators applied to the
High Court for directions as to the appropriate parties to be served with the
application and the method of service of proceedings, as it was recognised that there
were a large number of other investors, many of whom resided outside the
jurisdiction.
[6] The affidavits in support of these applications filed by Mr Corbett, showed
the strenuous efforts made by the joint administrators to identify and ascertain the
whereabouts of all interested parties to the present proceedings and all attempts
made to notify them of the proceedings.
[7] As a result of the orders made by this court and, in particular, the order dated
8 October 2021 which set out the names and addresses of the 72 investors in the
schedule and which further stipulated the mode of service of proceedings, this court
is satisfied that all the relevant parties have been identified and served with notice of
the proceedings.
[8] Mr and Mrs Foster, who were represented by Mr Harvey of Peden & Reid
Solicitors, unlike the other bedroom investors rescinded the sale agreement and
thereafter obtained a monetary judgment against the company. That judgment has
been registered as an order charging land against the folios comprising the property,
which said charge was registered after the legal charge held by the lender.
[9] All of the bedroom investors are litigants in person. Some appeared in person
via sight link, 23 filed affidavit evidence and some made oral submissions to the
court; including Mr Stephen Kearney, who essentially set out the common position
of the bedroom investors and in that sense represented their interests. In addition
the court also heard oral submissions from Ms Diane Basterfield and Ms Claire
McGaughey.
[10] The court is very grateful to all parties who filed skeleton arguments and
made written and oral submissions. All of these proved to be of much assistance to
the court.
Evidence
[11] The evidence in support of the application is contained within the affidavits
of Mr Michael Lennon sworn on 13 May 2021, 24 March 2022 and 25 May 2022
together with the exhibits thereto.
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