The Irish Nationwide Building Society has notified the Supreme Court that it will not be seeking a judicial review of a decision made by the financial services ombudsman requiring it to refund €30,000 of a €74,000 early loan redemption charge.

The society had imposed the charge on a commercial borrower after he paid off his loans before their full term had expired.

The society said it would argue that the ombudsman, Joe Meade, exceeded his powers under the Central Bank and Financial Services Authority of Ireland Act 2004. Documents were filed with the case, scheduled to be heard on Friday. It was subsequently withdrawn after it was established that its application had been made on incorrect grounds for appeal. The Irish Nationwide yesterday told the Supreme Court it would not now pursue the appeal.

The case against the ombudsman was due to be heard next Thursday and Friday in the High Court. The proceedings arise after the ombudsman approved a decision by the deputy financial services ombudsman, upholding a complaint by John Scully, Roganstown Golf and Country Club, Swords, Co Dublin, relating to an early loan redemption charge imposed in relation to commercial property loans taken out by Mr Scully and his late wife in late 1998 and early 2000 and repaid by 2003.