The Revenue Commissioners have come to an agreement with a Dublin businessman, Mr Matthew Kelly, a former director of Kelly's Carpetdrome (in liquidation), and declared him bankrupt, the Supreme Court heard yesterday. Under the agreement, Mr Kelly is to pay the Revenue €3.6 million.
At an earlier court hearing, Mr Michael Collins SC, for Mr Tom Grace, the official liquidator of Kelly's Carpetdrome, described Mr Kelly as "a unique species of bankrupt - one who is a multi-millionaire".
Yesterday, Mr Collins asked the Supreme Court to put back for four weeks the liquidator's appeal against a High Court decision refusing an extension of time in order to prove to the official assignee in bankruptcy a debt of IR£1.9 million against Mr Kelly. The Chief Justice, Mr Justice Keane, agreed to adj-ourn the matter for four weeks.
Kelly's Carpetdrome was wound up by High Court order in July 1981 on the petition of the Revenue. Mr Patrick J. Byrne was appointed official liquidator and brought proceedings against two directors of the company, Mr Eamon Kelly and Mr Matthew Kelly. In January 1984, Mr Matthew Kelly was declared bankrupt. In June 1987, Mr Byrne applied for court orders on the basis that the winding up of the company had been completed. He was also discharged as liquidator.
The official assignee in bankruptcy fixed July 31st 1997 as the last day on which creditors' proof of debt was to be received by him in the bankruptcy of Mr Matthew Kelly. No proof of debt was filed by that date.
In May last year, Mr Collins, for Mr Grace, applied to the High Court for more time to prove the debt against Mr Kelly. Refusing the application, Mr Justice McCracken said that the 13-year delay in making the application prejudiced Mr Kelly in that it would mean he would have to find a further sum of some £900,000 to become discharged from bankruptcy.
