A Circuit Court appeal was heard in the High Court where the underlying proceedings were taken pursuant to section 62 of the Registration of Title Act, 1964 (as amended by the Land and Conveyancing Law Reform Act, 2013).
The plaintiff in the case had sought an order for possession in respect of a charge on registered land. The Circuit Court judge granted the order for possession. The defendant, a lay litigant, appealed the order to the High Court.
There was an alleged change in the ownership of both the registered charge and the underlying debt secured upon the charge to the plaintiff in these proceedings, namely, Pepper Finance Corporation (Ireland) Ltd. The transferee (Pepper) made a substitution application to the High Court in March 2023 by way of an ex parte application. The application was made pursuant to Order 17, rule 4 of the Rules of the Superior Courts. The original plaintiff was KBC Ireland plc.
The standard practice in granting these ex parte orders is a provision that the defendant is informed, in writing that (a) a copy of the affidavit and exhibits grounding the substitution application be made available upon request (b) that an application may be made to court to set aside the order (c) that the defendant has an entitlement to contest the transfer of the loan and/or any security involved to Pepper at the hearing of the action.
The form of the order made by the court is that Pepper has effectively stepped into the shoes of the original plaintiff KBC Ireland plc.
The first issue the judge had to consider was whether the substitution order made in favour of Pepper was correct. The judge referred to a judgment of the Court of Appeal in Irish Bank Resolution Corp. v Halpin [2014] IECA 3. Here the view of the Court of Appeal was that rather than Pepper stepping into the shoes of KBC Ireland plc, the appropriate order is that the transferee is joined to the appeal as a second plaintiff. The decision in Halpin has been followed in Permanent TSB Plc v Morrissey [2017] IEHC 18 in the context of an appeal from the Circuit Court.
Therefore, in adopting the Halpin case, there was an issue before the court as to whether the order made in the present appeal was correct in that it released the original plaintiff (KBC) from the case.
Pepper’s counsel attempted to make a distinction between an appeal from the Circuit Court to the High Court, and an appeal from the High Court to the Court of Appeal.
However, the presiding judge felt he did not have to rule on this, nor the grounds of appeal from the appellant on the competing considerations as he felt that there was a significant point of law to be decided upon and which was one that should be decided by the Court of Appeal. As it stood, the court was bound by the judgment of Halpin though counsel for Pepper tried to distinguish Halpin from the present case and this stating the court was not bound by Halpin.
The judge thus adjourned the appeal proceedings to allow the preliminary jurisdictional issue to be determined by the higher court.
Pepper Finance Corporation DAC v Tracey O’Reilly High Court [2024] IEHC (ex tempore)
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