News Courts

Wednesday 17 September 2014

Row over charge on lands subject of €4.6m loan

TIM HEALY

Published 03/03/2014 | 18:28

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The High court is to be asked to stop a bank-appointed receiver going onto lands in a row over a charge secured on the property for a €4.6million loan.

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A UK property company, the Property and Investment Company (SE ) Ltd, claims the Bank of Ireland loan was approved, but never drawn down.

The company, which is the new owner of the lands at Grange, Balrothery West, Co Dublin,  want an order restraining the receiver from trespassing on its lands.

At the centre of the case is a €4.6million loan applied for but allegedly never drawn down by the previous owners of the land and against which Bank of Ireland registered a charge in 2007, it is claimed.

The matter came to a head towards the end of last month when a receiver went on to the lands at Grange on foot of a charge on the €4.6million loan.

The Property and Investment Company became the owners of the land in March 2013.

It is is seeking an injunction restraining the receiver from trespassing on lands and a declaration that the charge as registered in July 2007 is null and void.

Patrick Gough, a director of the company, said in an affidavit said there had been a transfer of ownership of the lands to the company on March 28, 2013, from the previous owner who had owned the lands since February 2007.

A charge on the lands was registered on July 18, 2007.

Mr Gough said The Property and Investment Company has never pledged the lands and premises including a house, sheds and swimming pool,  to the Bank of Ireland at any point in time.

He said the matter first came to the fore when, on February 20 last, a tenant of one of the shed units arrived at work to find the locks had been changed.

Mr Gough said the previous owner of the land had got approval for a €4.6million  Bank of Ireland loan in December 2006 which was secured on various lands including the 2.5 acres of land purchased last year by the Property and Investment Company.

Mr Gough said the previous owner executed the relevant documents of charge but says the loan was never drawn down. As a result Mr Gough said no entitlement flowed to the bank to secure registration of the charge.

The matter, which was mentioned briefly before Mr Justice Paul Gilligan yesterday, was adjourned until later this week.

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