NORTHERN Bank Ltd yesterday appealed a 1992 High Court ruling under which a Norwegian bank was held to be entitled to recover about $6 million (£3.81 million) and interest from Northern Bank.

Tromso Sparebank, a small bank taken over by Sparebanken Nord Norge, brought the action against Northern Bank, formerly a subsidiary of Midland Bank, which was bought by National Australia Bank and is now called National Irish Bank.

The Norwegian claim in the High Court, the Supreme Court was told yesterday, was primarily for judgment in the amount of two alleged promissory notes totalling $12 million.

The High Court proceedings were broadly concerned with the consequences of what had been, in effect, a major confidence trick involving three named persons and implicating the manager of one of the Northern Bank's smallest branches at Carrick on Shannon, Co Leitrim.

The Northern Bank, in its Supreme Court submission, claimed the two promissory notes apparently arose as part of a transaction or series of transactions in which the three individuals purported to arrange to buy fish for export to Nigeria to be paid for in US dollars from a Norwegian fish company which was a customer of the Norwegian bank.

The proposed purchasers apparently represented to the seller that the purchase price payable by means of promissory note would be guaranteed by Northern Bank. In his 1992 decision in the High Court, Mr Justice Morris said the Norwegian bank brought an action arising out of a deal in which an Irishman said he would purchase the fish and export to Nigeria.

Mr Justice Morris held the Norwegian bank was entitled to recover from the Northern Bank 50 per cent of the loss it suffered as a result of the Northern Bank's failure to issue a warning which resulted in the Norweigans paying out on two promissory notes.