The former owner of a fuel distributor, taken over by new management after an examinership, cannot continue to register a legal claim over several petrol stations in the restructured company, the High Court has ruled.

Thomas Tougher, who built up Tougher Oil Distributors Ltd (TODL) over 53 years, registered the claim – known as a lis pendens – last November. It prevented the new owner, John O'Regan, selling or dealing in various properties, including 10 fuel retailers.

Mr Tougher claimed the registering of the claims was the only way he could prevent alleged asset-stripping of his former firm and ensure there were assets available should he succeed in a separate legal action against Mr O’Regan claiming breach of contract.

Mr Tougher claimed his future role in the restructured company was concluded in a binding agreement “sealed with a handshake” with Mr O’Regan.

TODL asked the court to strike down the lis pendens and dismiss Mr Tougher’s breach-of-contract claim on grounds that it was bound to fail and was abuse of process.

Mr O’Regan argued the lis pendens was designed to damage his efforts to refinance the business and pay off its debts.

Mr Tougher’s lis pendens was preventing this deal going ahead and affecting other efforts to get mainstream bank finance for the company, Mr O’Regan said.

Mr Justice Brian Cregan ordered the lis pendens be vacated after finding it was a clearly unsustainable part of his case. The judge refused to strike out the breach-of-contract claim.