Council keen to talk to Mechanic's Institute owner after legal victory (From Swindon Advertiser)

Council keen to talk to Mechanic's Institute owner after legal victory

7:00am Thursday 16th February 2012 in Local By David Wiles

THE OWNER of the Mechanics’ Institute is being urged to re-start talks after Swindon Council won a legal battle to recover more than £300,000 it spent on emergency repairs.

The authority sued Forefront Estates at the Technology and Construction Court, in January, to get back the cost of works the council ordered to prevent the roof collapsing.

And on Tuesday, Mr Justice Ramsey ordered the company, headed by Mathew Singh, to pay the council £331,242 plus £13,249 in interest and legal costs of £60,128.

Barrister Alan Steynor, who represented the council, said the money must be paid within 14 days, or the council can ask the High Court to force the sale of the building to recover the sum.

He said the ruling also means the council will have a first charge on the building, meaning that the authority would be paid first over other creditors, such as HSBC bank, if the building is sold.

Now Garry Perkins, deputy leader of Swindon Council, who is also responsible for regeneration, is calling on Mr Singh to break his long silence.

He said: “The next stage is to follow through the judgment that went through and the initial start is to wait for Mr Singh’s reaction.

“At this stage it’s up to him. The message is basically ‘Mr Singh, come out and talk, come out and explain what you are going to do and come out to talk to us’.

“I’m not a lawyer and I don’t know how Mr Singh will actually reply at the moment. Maybe he has got the cash and maybe he will pay it. Maybe he has other plans.

“I cannot mind-read what Mr Singh has in his mind. After all, he bought the building to develop it and the building is still in his ownership and he still has an option to develop it.”

Coun Perkins said the council would pursue the debt, as well as a separate claim for the £850 spent on urgent works to the Mechanics, but would wait to see how the company responded.

Even though the council has first charge, it probably would not get all the cash back if the building was sold, because it is probably worth less than the charge.

Dan Rose, chairman of the Mechanics’ Institution Trust, said the judgment made it more likely that the building would eventually change hands, but claimed that community ownership would be the only long-term solution.

He said: “I think the concern now will be whether the council do actually get any money. So on the one hand they’ve won the case but they haven’t necessarily won the money.

“And what happens next in terms of ownership will be interesting. I don’t think there’s much evidence that the owner has the will, intentions or the capability to repay that amount of money so we will have to wait and see how he chooses to act.”