TD Joan Collins's legal challenge to next month's promissory note payment will also aim to test the validity of this year's IBRC Act, the High Court has heard. The People Before Profit politician initiated legal proceedings last week and wants her case heard as a matter of priority before the government pays €25 million for EBS on June 17th.

She claims as a TD she was denied a vote on the appropriation of state funds.

At today's brief hearing, Michael McDowell, SC, for the State told the court that the upcoming payment represents less than 1% of the total amount of promissory notes.

He told Mr. Justice Kevin Feeney that Ms Collins is now stating that these matters are of huge urgency despite being aware of the payment since January or February of this year. He said that since then the IBRC Act 2013 has been passed which allows the Minister for Finance to substitute new securities for promissory notes.

He added 'curiously' these proceedings want to challenge the validity of the act and if successful the outcome would have huge repercussions on the minister's ability to issue these securities as well as affecting ordinary loan notes.

Pursuing early hearing date

Lawyers for Joan Collins say she will be pursuing an early hearing date and have given reasons why the case is only coming to court now.

She was one of 5 TDs who unsuccessfully applied last February to join a Supreme Court appeal in a similar challenge to promissory notes taken by businessman David Hall. In that case the High Court ruled Mr. Hall did not have the legal standing to bring the action.

Joan Collins' legal team say an appeal against that ruling was meant to be heard as a matter of priority but it has not yet taken place. The case will return to court next week.