Investment Limited Partnerships (Amendment) Act 2020

Amendment of Act of 1994 - new section 42A relating to relief by way of indemnification

37. The Act of 1994 is amended by the insertion of the following section after section 42:

“Power of court to grant relief by way of indemnification

42A. (1) This section applies to any case in which a provision (the ‘relevant provision’) of section 13, 16, 24 or 31 requires a person specified in the provision (the ‘specified person’) to indemnify a person in respect of any loss referred to in the relevant provision suffered by the latter.

(2) In a case to which this section applies, where, on application by any person to the appropriate court, that court is satisfied that the applicant has suffered loss referred to in the relevant provision, the court may make an order requiring the specified person to pay to the applicant such amount as the court determines will indemnify the applicant in respect of that loss.

(3) In subsection (2), ‘appropriate court’ means—

(a) in a case where the following apply—

(i) the specified person has been convicted of an offence under the relevant provision in respect of the default to which the application relates, and

(ii) the total of the following amounts, namely, the amount of the estimated cost of complying with the order to which the application relates and the amount of the fine that has been imposed on the specified person in respect of that offence, does not exceed €5,000,

the District Court before which the specified person has been convicted of that offence,

(b) in a case where no prosecution has been brought, and none is pending, against the specified person under the relevant provision (in respect of the default to which the application relates) and the estimated cost of complying with the order to which that application relates does not exceed €15,000, the District Court, or

(c) in a case where either—

(i) the circumstance specified in subparagraph (i) of paragraph (a) applies but the total of the amounts referred to in subparagraph (ii) of that paragraph exceeds €5,000, or

(ii) the circumstance specified in paragraph (b) applies but the estimated cost of complying with the order to which the application relates exceeds €15,000,

the Circuit Court.

(4) If, in relation to an application under subsection (2) to the District Court (being an application to which subparagraphs (i) and (ii) of subsection (3)(a) apply), that court during the hearing of the application becomes of opinion that the total of the amounts referred to in subsection (3)(a)(ii) will exceed €5,000, it may, if it so thinks fit, transfer the application to the Circuit Court.

(5) If, in relation to an application under subsection (2) to the District Court (being an application to which subsection (3)(b) applies), that court during the hearing of the application becomes of opinion that the estimated cost of complying with the order to which the application relates will exceed €15,000, it may, if it so thinks fit, transfer the application to the Circuit Court.

(6) An application under subsection (2) to—

(a) the District Court shall be made to the judge of the District Court for the District Court district in which the principal place of business of the specified person is situate, but this paragraph shall not apply where subsection (3)(a) applies in the matter, and

(b) the Circuit Court shall be made to the judge of the Circuit Court for the circuit in which the principal place of business of the specified person is situate.”.