ARC Systems Limited has been dealt another blow by local Courts in its long running legal dispute with Exclusive Holidays of Elegance Limited.

ARC Systems had applied to the Court of Appeal for a stay of a recent ruling by Justice David Batts in the Supreme Court making an order of receivership against it.

The ruling by Justice Batts was made after an application of Exclusive Holidays of Elegance Limited.

ARC Systems had based its application to the Appeal Court on the premise that it believed it had a real prospect of success in its appeal.

ARC Systems told the Court of Appeal that without the stay of Justice Batts’ order, the actions of the receiver, Kenneth Tomlinson, could be harmful to it.

But in an order dated June 28, President of the Court of Appeal, Justice Patrick Brooks, refused the application for a stay.

The President of Jamaica’s second highest court ruled that ARC Systems failed to satisfy the requirements for granting a stay because it owed Exclusive Holidays of Elegance a significant amount of money.

Justice Brooks lists the judgement debt as $25,835,040.

ARC Systems had ceased trading for many years and its only assets are receivables.

ARC was therefore unable to show irreparable damage to it should the receiver be allowed to continue his work.

The Appeal Court judge noted that the longer the delay in collecting the outstanding debts the more  permanently improbable collection of those debts would become.

Justice Brooks noted this would be to the prejudice of the creditors of ARC Systems.

He says curiously Mr. Lackie Horne in an affidavit in support of the application for a stay, offered as a condition of the stay, to pay the amount of the judgement debt into court.

Justice Brooks says it’s puzzling that the judgment has not been discharged to rid ARC Systems of the current Court proceedings.

The Court of Appeal President ended his order by granting costs of the application to Exclusive Holidays of Elegance Limited.