A settlement agreement between former Fine Gael TD John Perry, his wife Marie and Danske Bank over a €2.47m judgment obtained against the couple has broken down, the Commercial Court has heard.

Mr Perry, a former Sligo-based TD, minister of state, and businessman, and his wife had consented to judgment against them for €2.47m in favour of Danske in 2013.

The bank sued the couple arising from a October 2011 facility for €2.42m provided to restructure existing loans. The couple did not fully repay the loan, and the bank then made a demand for payment which was not satisfied.

Following the judgment, Dankse claims it entered into a settlement with the Perrys.

They allege it was agreed Mr Perry would irrevocably assign all his rights benefits and interest in his TD pension and severance lump sum entitlements to the bank and that other certain payments would be made to Danske.

The bank says that on its part it agreed not to enforce the judgment against the couple.

The bank says the Perrys failed to comply with their obligations and last August it terminated the settlement agreement.

The judgment, it says, is not satisfied. As part of its bid to recover what it is owed Dankse believes the Perrys may have assets to satisfy the judgment.

It has obtained an order from the High Court directing the Perrys to set out their assets in a statement of affairs.

The matter returned before the Commercial Court today when Mr Justice Brian Cregan was told that the deadline for the Perrys to comply with the order had passed and no statement had been provided.

Lawyers for Danske said while failure to comply with a court order was serious from which consequences can flow, the bank was prepared in the interests of fairness to have the time to allow the Perrys provide the statement extended by another week.

The Perrys must also provide the bank with a sworn statement disclosing all documents in support of their statement of affairs.

Neither of the Perrys of Carrownanty, Ballymote, Co Sligo were present in court today. An accountant who spoke on their behalf said Mr Perry was ill.

He also told the court the Perrys were trying to but were unable to get information they had sought from the bank.

Mr Justice Cregan, who said the accountant had no right of audience, said he was adjourning the case.

The judge said he was extending the time the Perrys have to prepare a statement of their affairs and accompanying documents by two weeks.

The judge also said that the Perrys or lawyers acting on their behalf would have to attend court on the next occasion.