Irish Life and Permanent plc v Dunne

Irish Life and Permanent plc v Dunne, [2015] IESC 46, was a Supreme Court case addressing the impact of lender non-compliance with the Code of Conduct on Mortgage Arrears 2010 (the “Code”) on their right to obtain possession orders. The case arose from two Circuit Court proceedings where Irish Life and Permanent plc sought possession of mortgaged properties without oral evidence being heard, leading to High Court appeals. Hogan J referred questions to the Supreme Court under s38(3) of the Courts of Justice Act 1936.

The Supreme Court held that the High Court has jurisdiction to state a case for Supreme Court consideration even when no oral evidence was given in the Circuit Court, interpreting the Courts of Justice Act 1936 purposively. Clarke J emphasized that courts should ensure lenders comply with the Code’s moratorium on repossession proceedings; failure to do so requires refusing possession orders. However, non-compliance with other Code provisions does not affect a lender’s entitlement to possession. An affidavit affirming compliance with the moratorium is sufficient unless contradicted.

In Dunphy’s case, the Supreme Court ruled that s62(7) of the Registration of Title Act 1964 allows courts to grant possession if principal monies secured by a charge are due, as determined by the loan contract terms. The court concluded the principal sum was due before the section’s repeal in 2009, vesting the lender’s entitlement to possession.