The High Court has struck out Aetab Razaq’s claim against Allied Irish Banks over two disputed withdrawals from his account at the bank’s Castle Street branch in Tralee.
Razaq alleged that £31,000 was fraudulently withdrawn from his account on November 23, 1994 and a further £19,016.60 on May 28, 1996. He claimed the second defendant, Mohammed Aslam, made the withdrawals and concealed them from him. He also alleged that AIB had been negligent or in breach of contract in allowing the money to be withdrawn. Those allegations were disputed.
Razaq issued proceedings in April 2001. However, the case then experienced lengthy periods of inactivity. The High Court identified a period of more than three years and eight months during which no meaningful step was taken to advance the proceedings, and found that by February 2007 the delay had become inordinate.
Mr Justice Herbert rejected explanations advanced on Razaq’s behalf, including his residence in Pakistan, other litigation and later settlement discussions. The judge said they did not meaningfully explain the major period of inactivity between January 2003 and February 2007 and were unsupported by adequate evidence.
The court then considered whether the balance of justice favoured allowing the claim against AIB to continue. By the time of the application, nearly 13 years had passed since the earlier withdrawal. Bank officials identified as having been involved in the later transaction no longer remembered it, one had left the bank and another had retired. Supporting documentation was also missing.
Herbert J found that AIB was significantly prejudiced because evidence needed to explain the background and circumstances of the withdrawals was no longer available.
The court therefore held that the delay was both inordinate and inexcusable and that allowing the action against AIB to continue would be unfair. Razaq’s claim against the bank was struck out. The judgment did not determine the underlying allegations of fraud or negligence.