A BUILDING company is suing Irish Nationwide Building Society (INBS), claiming it wrongly took more than €6m from an account it had with the society.
Jackie Green Construction Company Ltd, Mercer Street Lower, Dublin 2, has brought the claim arising out of a dispute over an alleged arrangement it had with INBS to share profits or loss from a development in Dublin.
It claims some €6.28m was removed from its account without lawful authority and in breach of agreements.
INBS asserts it was entitled to remove the money on the basis of its own calculation of the likely amount due to it via an arrangement fee.
The proceedings were transferred to the Commercial Court yesterday by Mr Justice Peter Kelly, who was told INBS was willing to provide undertakings to retain the money and not remove further money from the company's account pending the outcome of the case.
INBS may also apply for orders requiring the company to produce certain accounts as allegedly provided for under agreements between the sides, the court heard. The action arises from loan facilities provided by INBS to buy and develop lands at College Drive, Terenure.
The company claims those facilities provided the net profit or loss from the development would be shared equally between both parties.
That arrangement was the subject of three supplemental loan agreements which provided that the proceeds of sale of houses built by the company would be lodged to its account with the society pending determination of the profit or loss on the development, it is claimed.
The company claims, on sale of each house, it lodged the proceeds to an account held in its name with INBS. The development is not complete and the profit or loss from it cannot yet be ascertained, it also claims.
Despite that, it claims, INBS last February removed some €6.28m from the company's account without prior notice, without lawful authority and in breach of contract.