A legal action has been launched against a Fine Gael Councillor and his 2 sons for allegedly using resources from their construction company Abbey Contractors Ltd for their personal benefit.

The High Court case is being taken on behalf of the firm, by Dublin based-shareholder, Edward Garry, against his brother Clare Councillor Oliver Garry, of Fort Hill, Kildysart, and his nephews John Garry and Colin Garry, who are company directors.

It is alleged the 3 men, who were described in the High Court as the 'Kildysart directors' have withdrawn around €400,000 over a 6 to 7 year period and that this was a 'concerted operation to use company resources for their personal benefit'.

Arthur Cunningham, BL for Edward Garry told the court it is also alleged that Colin Garry ''caused the company to build a large house for himself which he never paid it for''.

Edward Garry is a 15% stakeholder in the construction and plant hire business whose main customer is Irish Rail.

Application for return of €33,000

His lawyers today applied for a court order directing the return of €33,000 of company funds allegedly withdrawn by John and Colin Garry on December 21st.

Mr. Cunningham said his side was informed by a solicitor for the Kildysart directors last week that the money was withdrawn for a redundancy payment.

Mr. Edward Garry contests that it is a fictional redundancy as the matter was not brought before the board.

His legal team acknowledged the order being sought was a rare form of injunction but told the court there is concern that there will be further bank withdrawals which would mean that Abbey would not have the funds to bring a legal action.

Mr. Justice Patrick McCarthy refused to grant the injunction on an ex-parte basis as the claim could be unfounded.

The case has been put back to next week.