The High Court has dismissed a claim by National Irish Bank that it is entitled to €37 million judgment orders against Durkan New Homes, a couple and another company over failure to repay loans given for a large housing development at Cabinteely, Co Dublin, writes Mary Carolan.
Mr Justice Brian McGovern yesterday upheld claims by Durkan and the other defendants that, because they had paid interest by the loans repayment date of September 2008, the bank’s recourse is limited to securities on certain properties.
The properties in question are houses and lands at Beech Park, Cabinteely, Dublin, but the value of those securities is believed to be substantially less than the €37 million sought by the bank.
The judge said he was also satisfied the defendants, if called upon to do so during the term of the loan, would have been able to remedy a breach of the loan-to-value covenants in loan agreements. However, they were not asked to do so within the term of the loan, he found.
In those and other circumstances, he ruled the bank does not have recourse to the defendants for the full €37 million sum claimed and the defendants were entitled to the benefit of the limited recourse provisions in the loan.
