The High Court has blocked the proposed sale of part of a 113-acre family farm at Bohernascrub, Buttevant, County Cork, pending a full trial over whether Pepper Finance has any enforceable debt secured on the property.
Liam Philpott acquired the farm from his father in 1987 and borrowed £55,000 from Irish Nationwide Building Society in 1990, secured by a charge over the lands. A later £6,000 loan was also taken out for improvements.
The central dispute concerns the 1990 loan. An August 2012 letter from Irish Bank Resolution Corporation told Mr Philpott that all loans relating to the property had been paid in full and that IBRC no longer held any interest in it. Later correspondence from IBRC took a different position and maintained that more than €14,000 remained outstanding.
Pepper, which later became registered owner of the charge, demanded €27,695.01 in March 2024. Receiver Colin Gaynor was appointed the following month. He subsequently sought possession and arranged an online auction of 9.2 acres with an advised minimum value of €110,000.
Mr Philpott disputes that any money remains due. He also argues that, even if a balance existed, Pepper’s enforcement rights expired under the Statute of Limitations because the full loan appears to have fallen due in January 2011.
Ms Justice Stack held that both arguments raised serious issues requiring a full trial. She said the 2012 letter was clear on its face in stating that all secured loans had been repaid, although its true effect remained disputed.
The judge also found a serious question over whether the mortgagee’s title and powers had been extinguished after the 12-year limitation period.
On the balance of justice, the court considered sale of part of a family farm potentially irreversible. The farm was said to be worth about €2 million, leaving Pepper adequately secured if it ultimately succeeds.
The injunction preventing sale will therefore remain in place until the proceedings are determined.