Former Fianna Fáil politician Gerard Killally has lost his appeal against a decision extending his term of bankruptcy for a year because of a conviction he received for stealing from his estate.
The one-time general election running mate of former taoiseach Brian Cowen claimed he was being unfairly punished by a High Court decision last May that his exit from bankruptcy should be postponed for a year arising out of his conviction for stealing €18,000 worth of refrigeration equipment from his bankrupt estate.
A former councillor, Mr Killally, Edenderry, Co Offaly, applied for bankruptcy due to debts of more than €70 million. In July 2009 he was adjudicated bankrupt.
Under a more lenient bankruptcy regime recently introduced he was entitled to automatic discharge from that status last June.
However, at Midland Circuit Court in November 2012 he pleaded guilty to theft of the refrigeration equipment which was under the control of the court-appointed official administering his estate, the official assignee Chris Lehane.
Later, Mr Lehane applied to the High Court to extend the bankruptcy period to June next year on the basis that Mr Killally had failed to co-operate with the bankruptcy. Mr Lehane also had concerns about two pension plans that had not been previously disclosed by Mr Killally.
Last May, Mr Justice Brian McGovern ruled the bankruptcy should be extended for a further 12 months.
Mr Killally appealed to the Supreme Court arguing the sanction was disproportionate. His counsel, Vincent P Martin, said he had "taken his medicine" after pleading guilty to the theft. While awaiting sentence for the theft, Mr Killally spent two weeks in Cloverhill Prison which was such a harrowing experience it caused him to end up in a padded cell, counsel added.
He was given a three-year suspended sentence and 240 hours community service which he had completed.
Bernard Dunleavy SC, for Mr Lehane, argued the bankruptcy extension should stand to discourage noncompliance with the official assignee.
Mr Justice Frank Clarke, in a unanimous decision on behalf of a three-judge Supreme Court, said Mr Dunleavy's argument was well founded.
If a court is satisfied there is a failure to co-operate, or to hide or not disclose assets, the official assignee is entitled to apply for an extension of bankruptcy, the judge said.
There was no error of principle in the High Court decision and it was proportionately open to the judge to impose the extension, he added.
He was also satisfied the pensions issue did not play any material part in the High Court decision.