KBC BANK has secured a €5.6 million summary judgment order against a Co Meath businesswoman over an unpaid loan advanced to buy a commercial property in Dublin and to refinance an existing loan.

At the High Court yesterday, Mr Justice Michael Peart granted the order against Eileen O’Grady Blake, College Hill House, Slane Co Meath.

Ms O’Grady Blake was not contesting the bank’s application and was adjudicated a bankrupt by a court in England last December, the court heard.

Neither KBC nor the official receiver appointed by the English courts over her estate accepts her centre of main interests or trading was the UK, the court heard. The official receiver has applied to have the UK bankruptcy adjudication annulled.

KBC claimed Ms O’Grady Blake had, in early 2006, accepted loan offers totalling €5.32 million from the bank. These were to refinance existing loans relating to a property at Belvedere Place, Dublin, and to purchase a commercial property at Rosemount Business Park, Dublin, later leased to a subsidiary of Royal Mail.

The bank said it called in the loans in April 2011 after Ms O’Grady Blake fell into arrears and stopped making repayments.

Patrick Leonard, for the bank, said it had appointed a receiver over the two Dublin properties which were put up as security for the loans.

He said Ms O’Grady Blake then brought High Court proceedings aimed at preventing the receiver taking possession of the properties. She had alleged the receiver was not validly appointed and that KBC negligently advised her in respect of the loan.

The bank had denied all her claims, and, in a counterclaim, sought repayment of the full amount due, counsel said.

However, last December, before the High Court case came to hearing, the bank discovered Ms O’Grady Blake had been adjudicated bankrupt in Slough, England, and that an official receiver had been appointed, counsel said.

The bank was taken by “complete surprise” by her bankruptcy adjudication, he said.

The bank was later informed in a letter Ms O’Grady Blake would not be proceeding with her action against the bank and would not be defending the counterclaim.

In those circumstances, KBC was seeking summary judgment for €5.678 million, counsel said. He said the bankruptcy did not prevent KBC seeking that order.

Mr Justice Peart granted judgment for the full amount claimed.