A CO Limerick man has agreed to a summary judgment order for €9.2 million being made against him over his failure to repay a development loan.

Mr Justice Peter Kelly noted yesterday that Michael McManus, Roxboro, Ballysheedy, Co Limerick, had stated he had no answer to the claim and, in those circumstances, had sensibly not sought to defend it, which would involve running up additional costs.

The judge granted judgment in the sum of €9,203,255 to KBC Bank Ireland plc, formerly IIB Bank, against Mr McManus.

The action arose from a €8 million loan granted by KBC to Mr McManus in August 2005 to refinance existing borrowings provided by Bank of Scotland Ireland related to 57 acres of development land at Meelick Road, Ennis, Co Clare, and to facilitate property investment.

A further facility of up to €10 million was granted in April 2007 to be used to cover the previous €8 million loan, to provide some €750,000 for property investment and the remainder for interest payments.

It is claimed Mr McManus failed to repay the sum as agreed by June 30th, 2009, and the sum of €9.2 million, including interest to date, was now due and owing.

In other separate proceedings yesterday, ACCBank is claiming some €6.4 million against solicitors Patrick Mark Connellan, Michael Connellan and Gerard Carthy, practising as Connellan Solicitors, over undertakings related to unpaid development loans of €9.2 million provided to a company, Leatime Construction Ltd, for substantial property developments at Carrick-on-Shannon, Co Leitrim and at Ballinagh, Co Cavan.

The bank claims the solicitors breached the terms of undertakings, including to lodge with it the net proceeds of sale of more than 70 housing units and to lodge a maximum €1 million from nine other units on another development site so as to reduce the company’s debt. It claimed it was told there were a number of irrevocable signed contracts for some housing units when that was not the case.

The bank appointed a receiver over Leatime earlier this year but claims an estimated shortfall of some €6.4 million in the receivership.

It also took proceedings against the directors of Leatime, Larry Keogh and Philip Mullins, and Mr Justice Kelly granted summary judgment for some €9.5 million against those defendants last April.

Both men were later adjudicated bankrupt.

The bank says this meant it would be unable to recover the €9.5 million judgment and it then proceeded with its claim against the solicitors.