High Court, exercising its inherent jurisdiction, sets aside an order for judgment in the sum of €7 million, obtained by a bank against a defendant who had entered an appearance but did not attend the hearing of the application in July 2013, on the grounds that it would be unjust not to do so where the defendant was so mentally unwell at the time notice of the motion was served on him that he had no true warning that it was to take place.
Motion to set aside judgment of Commercial Court obtained in 2013 - defendant entered appearance but did not attend motion for judgment - defendant was served with notice of application - defendant says he was suffering from psychological and mental illness at time of service - defendant also says he did not have time to get legal representation at time due to rapidity of proceedings - application to set aside heard by McGovern J and refused - refusal appealed to Court of Appeal - at Court of Appeal hearing, Counsel for Bank indicated that order of High Court was, in error, made under O 13 - O 13 relates to setting aside judgment obtained against persons who do not enter appearance - O 36 r 33 was also mentioned in High Court, however it relates to plenary proceedings only - O 37, which concerns summary proceedings, does not mention applications to set aside - Court however has inherent jurisdiction to set aside - Court will only re-open matter in very exceptional circumstances - Court can only do so where there would be some breach of constitutional rights - very heavy onus on applicant - Court finds that defendant had no actual knowledge that the hearing was taking place - Court finds that it would be unjust to allow judgment to stand - Court sets aside judgment - Court orders that matter should be re-heard in short time frame.