Court to rule on alleged failure to repay loans to AIB

The Commercial Court will rule later tomorrow if Allied Irish Bank is entitled to summary judgment orders for some €6.28m against four businessmen, including a son of well-known hotelier Jim Mansfield, over their alleged failure to repay loans advanced to develop lands in Co Meath.

AIB claims that James Mansfield Jnr. Palmerstown House, Johnstown, Co Kildare, Brian Higgins Allensgrove, Celbridge Road, Leixlip, Co Kildare Glen O'Callaghan, Drapier Road, Dublin 11 and Seamus Kavanagh Kyle, Killea, Templemore, Co Tipperary, owe it some €6.2m as a result of loans advanced to them from 2003 in connection with the purchase of a site at Duleek, Co Meath.

The bank claims the defendants formed a partnership, entitled the 'Duleek Partnership', for the purpose of acquiring the lands with the purpose of constructing apartment blocks an underground car park and commercial units which were to be sold on.

The bank demanded repayment of the loans in September last but said payment was not made.

However the defendants are opposing the banks application for summary judgment and counsel on their behalf argued before the Mr Justice Peter Kelly yesterday that the matter should go to a full plenary hearing because to they have an arguable defense to the bank's claim.

Following the conclusion of submissions from both sides, at the Commercial Court the big business division of the High Court, Mr Justice Kelly said he was reserving his decision to Friday morning.