WELL-KNOWN property developer Paddy Kelly was not represented at the Commercial Court yesterday 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 exceeded 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 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.
A spokeswoman for Paddy Kelly’s property businesses said there would be no comment on yesterday’s court hearing.
One of Mr Kelly’s companies is due back in court today in a case where landlords are seeking possession of a premises.
John and Joseph Wickham are seeking possession of a premises in Smithfield, Dublin, from Mr Kelly’s company Redquartz Smithfield Ltd. The case is due to be heard before Mr Justice Kelly in the Commercial Court.
In seeking last month to admit the case to the court, Patrick Leonard, for the owners, said it was a claim for ejectment on title relating to a property valued at €10 million, with an annual rent of €550,000. There were existing rent arrears and there had been difficulties with rent payments, the court was told.
