A company that owns a hotel complex in Co Meath may pursue a £4.2 million sterling (€5.3 million) claim for compensation arising from Meath County Council's refusal to grant permission for an extension to that complex, the High Court has ruled.

In a decision that may have implications for the planning process, Mr Justice Peart held, when considering an application for permission, a planning authority cannot have regard to anything but the relevant development plan for the area.

The authority could not have regard to a draft of a proposed development plan.

The judge's decision arose from proceedings taken against Meath County Council by Ebonwood Limited, which operates the Station House Hotel at Kilmessan, Co Meath.

The council refused permission for an extension to the hotel premises in April 2000.