Motor business claims freezing of accounts was unconstitutional
on 16/06/2009 19:44:44
A motor repair and sales business has commenced High Court proceedings against both the AIB and the State arising out of a decision to freeze the firm's bank accounts following a direction from the Gardaí.
Vehicle Tech Limited, Hillcrest, Cloughran, Co Dublin have brought an action against Allied Irish Banks, the Garda Commissioner and the State over last July's decision to freeze its accounts following a direction issued by the Gardaí.
In its action Vehicle Tech claims that the Garda direction is unlawful, unconstitutional and contravenes the European Convention on Human Rights.
The company also claims that the bank is in breach of contract and has caused it irreparable damage.
The defendants have denied the claims.
The court heard that the direction was given as part of an on going Garda investigation into the sale of allegedly stolen lorries, and that a file has been sent to the DPP.
The firm is seeking declarations from the court including that the direction and the banks refusal to comply with the company's demand for payment out of its current account were unlawful.
It is also seeking declarations that Section 31(8) of the 1994 Criminal Justice Act should not enjoy the presumption of constitutionality, and is incompatible with the European Convention on Human Rights in relation to fair procedures, equality and property rights.