ACC BANK is entitled to judgment of almost €2 million against an estranged husband and wife over their failure to repay fully a loan advanced to buy properties, the High Court has ruled.

Mr Justice Frank Clarke granted the order yesterday against Ann and Frank Kelly, Highbury, Rathmullan Road, Drogheda, Co Louth. Both defendants were teachers for many years but, over the last decade, Mr Kelly also got involved in the property business, the judge noted. The Kellys built up a significant portfolio of some 30 properties, with borrowings from both ACC and Ulster Bank.

In its proceedings, ACC claimed it was entitled to judgment on foot of a loan advanced to the Kellys in October 2006 on which arrears had built up. In April 2009, the bank called in that loan.

The Kellys, representing themselves, had claimed that on the basis of the original loan terms and additional agreements with ACC, the bank was not legally entitled to demand payment of the loan at this stage.

In her defence, Ms Kelly argued that during meetings with ACC, held after arrears started to build up, the bank had agreed not to call in the loan if certain steps were taken. It was also claimed the bank had agreed to ringfence the net proceeds of the sale of two of the properties to cover any shortfall in interest repayments on the loan.

The defendants also argued that ACC wrongfully put in a receiver over the Kelly properties and disputed the manner in which ACC had added surcharge interest.

ACC denied any of the arguments advanced amounted to a defence against judgment. The bank accepted discussions had taken place, but denied it had entered any agreements.

Mr Justice Clarke found there was no evidence of any agreement whereby ACC would not enforce its loan. The judge ruled ACC had ample reason to call in the loan in April 2009 and was entitled to do so. There was nothing inappropriate in the appointment of a receiver by the bank and no evidence of any inappropriate action by the receiver, he found.