A battle over plans for a multi-million revamp of the U2 owned Clarence Hotel in Dublin has gone to the High Court. The overhaul would see the luxury boutique hotel significantly enlarged but the project has run into problems over planning permission.

Ambitious plans to erect a new and enlarged Clarence Hotel at Wellington Quay were hatched in 2007. Planning permission for the revamp was granted, but in 2009 the project was shelved as the recession took hold.

Last March there were signs of life as the hotel owners, which include developer Paddy McKillen and U2's Bono and The Edge, applied to Dublin City Council to extend the duration of the planning permission.

The multi-million euro refit would include a flying saucer-like roof known as a 'skycatcher' on the Temple Bar hotel.

However the Council refused their planning application on the ground that the current city development plan has a 7-storey restriction on non-residential buildings.

The High Court today gave permission to the Clarence Partnership to bring a legal challenge to try and overturn that decision.