NATIONAL IRISH Bank is seeking summary judgment orders for €8.5 million against beleaguered property developer Paddy Kelly and two businessmen – Niall McFadden and Paul Pardy – over personal guarantees given for an overdraft facility for Mr Kelly’s company, RQB Ltd.
NIB also wants an additional £1 million (€1.17 million) summary judgment order against Mr Kelly over a term loan given towards investment by Mr Kelly in Club Company Acquisition Holdings Ltd.
Mr Justice Peter Kelly gave leave yesterday to Declan McGrath, for NIB, to apply on August 12th next to transfer the case to the Commercial Court and to seek summary judgment in the amounts claimed.
Counsel said the application related to bank facilities secured under guarantees.
In an apparent reference to Mr Kelly, counsel said one of the defendants was “well known to the court” and the bank was “concerned about his position”.
NIB is the latest of several banks to move against Mr Kelly after he told the Commercial Court earlier this year he was considering bankruptcy. To date, judgment orders for some €84 million have been secured against him.
The NIB proceedings have been brought against RQB Ltd (formerly Redquartz Boundary Ltd), Flemings Place, Dublin 4; Paddy Kelly, Clonmore, Shrewsbury Road, Ballsbridge, Dublin 4; Niall McFadden, Avoca Wood, Blackrock, Co Dublin; and Paul Pardy, Dunsandle Court, Castleknock, Dublin 15.
The bank wants summary judgment orders against the company and the three defendants for €8,564,197 arising from an overdraft facility of December 2005 for some €12 million made available to RQB for the purpose of acquiring certain properties “pending injection of investor equity”.
The bank claims the three individual defendants executed a guarantee on December 23rd, 2005, indemnifying the bank in relation to that overdraft facility.
It also claims entitlement to summary judgment for some £1 million against Mr Kelly himself related to a term loan facility.
The bank claims it demanded repayment from RQB of the €8.5 million sum, plus interest, on July 22nd last when it also demanded repayment of the £1 million facility.
On July 24th last, it sought payment from the other defendants under the guarantee. It claims no payment has been made relating to either facility.
