Leona Flynn, wife of property developer John Flynn, has lost her case against NAMA after the High Court ruled that Mrs Flynn was a borrower of NAMA in respect of the Belfield Office Park loan.

Mrs Flynn, whose family are being pursued by NAMA for €22m, took the legal action against NAMA contending that she was not a debtor of NAMA. 

She was asking the court to declare that she was no longer the owner of the Belfield shareholding, having transferred her 10 per cent interest in Belfied Office Park to her husband. 

However, in a judgement issued today in the High Court, Mr Justice Cregan ruled that Mrs Flynn is 'indebted' to NAMA in respect of the Belfield Office Park loan.

It also noted that while an agreement between John and Leona Flynn to transfer her interest in Belfast Office Park was entered into in September 2007, it was not binding on Anglo Irish Bank. 

The court concluded that there was no evidence that David Drumm, then Chief Executive Officer of Anglo Irish Bank, had agreed to release Mrs Flynn from her guarantees and indemnities to the bank.

The Flynns' submission that NAMA had engaged in deliberate overcharging was also rejected.

However, the judgment found that Nama gave misleading reasons for demanding repayment of loans in two letters it sent to the Flynns.

The Judge concluded in setting out "incorrect and misleading reasons" the agency acted "unfairly and unlawfully in breach of its duty of transparency."

The judge said the agency denied the Flynns the right to be heard.