The family of bankrupt businessman Sean Quinn says the Commercial Court has the power to lift a statutory stay on its lawsuit against the Irish Bank Resolution Corporation (IBRC).

The stay affects all existing legal proceedings against the bank. It came into force when the Oireachtas enacted emergency legislation last month to wind up IBRC.

Applying to lift the stay, Martin Hayden, SC, for the Quinns has told the court the provision has resulted in a huge volume of litigation being put on hold.

Quinns argue 'unique' position

The family of bankrupt businessman Sean Quinn is affected as it is suing the former Anglo Irish Bank in a challenge to the legality of €2.3 billion of loans issued to Quinn companies.

Mr. Hayden claims the stay only remains in place until the court agrees to lift it as otherwise it would be permanent and the proceedings might as well be struck out.

If the court does not have the power to lift the stay, the IBRC Act 2013 would create an 'invidious and arbitrary distinction' between citizens as the legislation allows new lawsuits to be brought against the bank.

Mr. Justice Sean Ryan has been told this is a 'somewhat unique' application as the special liquidators for IBRC are in agreement with the Quinns.