Developer challenges Nama move

Developer David Daly and his son and daughter have taken legal proceedings to prevent the National Assets Management Agency insisting on repayment of their €457 million loans with Allied Irish Banks or appointing a receiver over properties.

Michael Cush SC, for David, Joanne and Paul Daly, secured permission from the High Court today to serve short notice of their proceedings on Nama, the State and AIB.

Mr Cush said the Dalys' case was they were meeting all their obligations concerning the loans but Nama had taken the view these were demand facilities which could be called in any time.

Nama had done so on Wednesday last and given his clients until close of business on Thursday to repay all the loans, he said.

Mr Justice Garret Sheehan told counsel he could serve short notice of his application on the defendants and returned the matter to Monday.

The Dalys' are seeking a declaration that credit facilities entered into by them with AIB in July 2007 and February 2008, which loans were transferred to Nama last year, are not repayable on demand.

Nama's decision to demand repayment of the facilities on or about June 22nd and June 24th is unreasonable, disproportionate and contrary to their constitutional rights and an improper exercise of its powers, they claim, and they want court declarations to that effect.

They are also claiming certain provisions of the Nama Act are invalid, unconstitutional and in breach of the State's obligations under the European Convention on Human Rights.