The Supreme Court has begun hearing an appeal by developer Paddy McKillen aimed at stopping the transfer of more than €2bn of loans to the National Asset Management Agency.

Seven Supreme Court judges are hearing the appeal against the High Court's dismissal of his challenge to the agency.

Lawyers for Paddy McKillen outlined to the Supreme Court the five grounds on which they would be appealing.

Senior Counsel Michael Cush also outlined ten facts, which he said were unique to Mr McKillen's case and did not apply to other borrowers.

These included the fact even at current values, if all Mr McKillen's properties were sold now, he would have an equity redemption of €200m.

Mr Cush said a fundamental criticism of the High Court judgment was that when it assessed whether there had been an interference with Mr McKillen's property rights, it failed to address the facts specific to Mr McKillen and had instead dealt with abstract legal ideas.

He said the lower court had completely ignored the damage to the value of Mr McKillen's properties, which would be inflicted if they were acquired by NAMA and if the agency then forced the sale of the properties in a terrible market.

Mr Cush said the interference was such that Mr McKillen should have been given an opportunity to make his case to NAMA.

He said Mr McKillen was prevented from making submissions to NAMA before a decision was taken to acquire his loans and the legislation prohibited him from making submissions after the acquisition.

Mr Cush referred to a US court case from the McCarthy era said there was a necessity to guard fair procedures in times of calm and in times of trouble.

The case will continue tomorrow.