Fund entitled to possession of Galway property, High Court rules

A financial fund is entitled to an order for possession of a property in Galway, the High Court has ruled. A stay of one month applies on the possession order which relates to a property in Salthill where, the court heard, a number of people live.

Ennis Property Finance DAC, which is controlled by US investment bank Goldman Sachs, sought the order for a house in Devon Park, Salthill. Its proceedings were against the property’s owner, Henry Greally, who opposed the application.

Ennis claimed Mr Greally had defaulted on loans totalling €550,000 taken out with Bank of Scotland (Ireland) in 2003 and 2006 and acquired by the fund in 2015. The loans were to be used for purposes including capital expenditure and mortgage redemption and the Salthill property was put up as security for those borrowings, it was claimed.

Mr Greally, with addresses at Knocknacarra Park, Salthill, and Henry Street, Galway, opposed possession on grounds including the sum of money allegedly due and owing arising out of the loans had not been fully explained to him. He also disputed the validity of personal guarantees allegedly given in respect of the loans, and claimed the fund had been reckless in issuing the possession proceedings where, he claimed, the paper work was not correct.

In his judgment on Monday, Mr Justice Garrett Simons said the uncontroverted evidence before the court was that the fund is the owner of the registered charge over the property and is entitled to an order for possession. The judge said it was an “unusual” case. While Mr Greally had lawyers representing him, he had sworn an affidavit which was almost entirely irrelevant to and did not engage with the proceedings before the court, he said. The affidavit seemed to be directed at separate proceedings by Ennis seeking summary judgment against him, the judge said.

The judge concluded the fund has a power of sale over the property. He also awarded Ennis its costs of the action.