Business

Monday 27 March 2017

Court orders three to testify over liquidation of language school

Three people have been ordered to appear before the High Court in connection with the liquidation of Irish Education Business and Research Limited
Three people have been ordered to appear before the High Court in connection with the liquidation of Irish Education Business and Research Limited
Sarah McCabe

Sarah McCabe

The High Court has ordered three people to appear for examination under oath, to facilitate the liquidation of a collapsed English-language school that went insolvent more than 18 months ago.

Justice David Keane granted an application made by liquidator Declan DeLacy of PKF O'Connor Leddy and Holmes, to compel three people - Fakir Hossain, Golam Shohan and Mehedi Hasan - to appear before the court for examination in connection with the liquidation of Irish Education Business and Research Limited.

The company, which traded under the name Irish Business School, was set up in August 2011. It taught English and other subjects to foreign students from a premises in Dublin. The college closed its doors in May 2014 and a liquidator was appointed two months later. More than five colleges catering to foreign students in Ireland closed suddenly in 2014, leaving hundreds of students and creditors out of pocket.

In Justice Keane's judgement, the court noted serious difficulties encountered by Irish Business School's liquidator in establishing the company's financial history. "The liquidator has described the difficulties that he has encountered in locating or obtaining the company's books, records, papers and accounts and specifically, has averred that, apart from certain bank statements, he has 'absolutely no details as to the management or more importantly the financial history of the company' and 'grave concerns' as to payments made by the company," he said.

"I am satisfied that each of the respondents is a person reasonably suspected to have in his possession certain property of the company (despite the sworn denial of each that that is so), and that each of the respondents is a person the court deems capable of giving information relating to the trade, dealings, affairs or property of the company (beyond the carefully drafted and selective averments that each has so far made on affidavit)," the judgment said.

Two other named individuals were listed as the company's directors, the court heard, and one of them owned 100pc of its shares.

They told the liquidator, however, that the shares were held on trust for Hossain and that he was in effective control of the company.

Sunday Indo Business

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