Property developer Paddy Kelly was not represented at the Commercial Court today when Bank of Ireland secured an order for judgment for €3.4 million against him over alleged failure to repay loans.
Rossa Fanning, for the bank, said it had brought its proceedings in the Commercial Court, which fast-tracks legal actions, in the context of Mr Kelly telling the court last month his liabilities exceed his assets and he is considering the possibility of bankruptcy.
When the proceedings were called, Mr Justice Peter Kelly asked was there any appearance by or on behalf of Mr Kelly, of Clonmore, Shrewsbury Road, Dublin, to which question there was no response.
Mr Fanning told the judge he was not expecting any appearance on behalf of the defendant, adding while there had been “tentative” contact by a legal firm with the bank, no appearance had been entered.
After examining legal documents served on Mr Kelly’s address which were accepted by Mr Kelly and his wife, the judge said he was satisfied service of the proceedings had been effected.
Mr Fanning said the proceedings related to commercial borrowings for some €3.225 million in July 2007 to refinance a property at Baggot Street, Dublin.
In documents, the Bank said a condition of the loan facility was that it be fully repaid no later than July 31st, 2008. Mr Kelly failed to make required interest and surcharge payments of some €50,460 on July 23rd last and also failed to make other interest repayments later in 2008. He also failed to pay the principal amount due on July 31st 2008.
The bank demanded repayment of the sums due on December 22nd last but the sums remained unpaid. The amount due on March 31st last was some €3.46 million, plus continuing interest.
The judge said he was satisfied the Bank was entitled to an order for judgment in the amount sought, plus interest.
