PROPERTY DEVELOPER Paddy McKillen has won his Supreme Court appeal against the National Asset Management Agency, who had attempted to take control of €2.1bn of McKillen’s loans from Bank of Ireland.
McKillen successfully challenged the High Court’s earlier decision not to block the transfer, by arguing that the decision to acquire his loans had been made before the legislation officially establishing NAMA was enacted.
The Court found that NAMA had not made a formal decision to acquire its loans; the decision was made by the interim team which operated before NAMA itself was established.
The decision of the interim administration was not automatically assumed to have been the decision of NAMA itself, the Court ruled.
The Court ruled against another aspect of the challenge, however, where McKillen said the European Commission’s permission for the establishment of the agency did not allow it to acquire ‘performing’ or unimpaired loans.
The major ruling, handed down by seven of the court’s nine justices this morning, could have major ramifications for the state’s banking policy – and adds another major issue to the election agenda.
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