The High Court has dismissed an application by Aillied Irish Banks to have former Fine Gael Minister and broadcaster Ivan Yates declared bankrupt.
In a judgment today Ms Justice Elizabeth Dunne found that a bankruptcy summons issued by the bank in respect of Mr Yates, arising out of his alleged failure to satisfy a €3.69m demand by AIB, was invalid.
This the judge said was because Mr Yates had raised "real and substantive issues"" in respect of the amount sought by AIB.
These issues had "some prospect of success" and have to be "litigated outside of the bankruptcy process." For that reason the judge said she was dismissing the bankruptcy summons.
The bankruptcy summons was issued last May in respect of a sum of €3.69m claimed by AIB.
AIB claimed the money was due on foot of guarantee, dated April 2010, between it and Mr Yates where AIB claims he agreed to pay on demand all the liabilities due and owing by Celtic Bookmakers.
The bank served a demand for payment of the money on Mr Yates in April 2012.
Lawyers representing Mr Yates had argued before the High Court that the summons was invalid on several grounds including that the amount being sought by AIB was overstated.
The validity of the summons was also challenged on the basis that Mr Yates was not served with a valid four-day demand notice and that the bank did not demand payment of the debt on more than one occasion before applying to have the summons issued.
It was further claimed that before it sought to have the summons issued, AIB did not lodge all the required relevant documentation with the proper office.
AIB had rejected those arguments and said that the summons was valid.
Mr Yates was not present in court today.