The operators of the 16-bedroom Aberdeen Lodge hotel in Sandymount, Dublin 4 have claimed the purported sale of the property is unconstitutional and in breach of their rights under the European Convention on Human Rights (ECHR).
The alleged breaches are being alleged by Patrick Halpin and his partner Ann Keane, who the High Court heard live with their two children at the property, which they claim is their family home.
They claim the sale of the property, which has been the subject of several court battles over the last decade, by Everyday Finance DAC to an entity called Stairway Property Company Ltd, under the 1881 Conveyancing Act is contrary to various articles of the Constitution, and the ECHR which deal with property and family's rights.
Stairway does not accept that the property is the couple and their children's family home.
As a result, the couple and a related corporate entity called Elektron Holdings Ltd have brought proceedings against Stairway, Everyday and the State.
The claimants are represented in the action by John Kennedy SC, Peter McKenna Bl, instructed by solicitor Eugene Carley,
Mr Kennedy said it is his clients' case that the property cannot be lawfully sold under what is a "Victorian piece of legislation".
In that action, which was mentioned before Mr Justice Mark Sanfey on Thursday, the couple seeks various orders, including declaring the purported sale to have been null, void, unlawful and in breach of the Constitution and the ECHR.
Family home
They also seek a declaration that the property at Park Avenue, Sandymount is the couple and their children's family home.
In separate proceedings brought by Stairway, it seeks various orders, including an injunction granting it possession of the lodge it claims it acquired in September.
Represented by Padraic Lyons SC, appearing with Eoin Martin Bl, Stairway claims the action against it and the others is an abuse of process, and was only initiated after the property was sold.
Its proceedings are against the couple, Elektron which is in receivership, Madison Manor Limited ,which is the corporate entity which operates the hotel, and all persons in occupation of Aberdeen Lodge.
Stairway has also asked the court to make directions regarding the exchange of legal documents in that action.
On Thursday, Mr Kennedy told the court that while his side are quite happy to have all matters heard as soon as possible, his side was quite "surprised" by Stairway's decision to seek an injunction against it.
Counsel said Stairway's bid for an injunction seeking possession could easily have been made as a counterclaim in the action brought by his client, rather than bringing injunction proceedings which are "unnecessary".
Counsel said Stairway's solicitors had asked his clients to furnish it with a statement setting out his clients claim within an eight-week period.
However, before that eight weeks had expired, it had come to court and sought various orders against his clients on an ex-parte basis.
In reply, Mr Lyons said that while his side had been served with a summons outlining the claims against it, Stairway does not fully know what the action is about, and wants the couple and Elektron to set out its allegations in a statement of claim.
Counsel said his side wants both actions determined quickly.
Brian Conroy SC, for the State, said his side would also like to be furnished with documents in what is a challenge against legislation of "some antiquity" as soon as was possible.
The court also heard from Everyday Finance's lawyers, stating it does not understand why it has been sued, and says it should be let out of the action.
Mr Justice Sanfey agreed to put a timetable in place for the exchange of legal documents in the two cases.
The matter will next be mentioned before the court later this month.
Possession of the lodge has been the subject of lengthy and complex legal proceeding in recent years before the High Court, Court of Appeal and Supreme Court.
Receivers were appointed over the property over an alleged failure to repay a debt of €24 million to IBRC, arising out of loans they had taken out.
The couple's alleged debt was sold first to Kenmare Property Finance, which in turn sold it to Everyday Finance.
