AIB claims the master of the High Court exceeded his powers and risked the perception of bias when he struck out a case the bank had brought against a solicitor.

Edmond Honohan previously sought to have affidavits sworn by AIB officials referred to the Director of Public Prosecutions (DPP) for alleged perjury.

AIB was taking a case against a Dublin solicitor over claims she had not carried out her professional duties in relation to clients' mortgages with the bank.

Master of the High Court Mr Honohan maintains there was a 'clear perjury' in affidavits submitted by the bank, and he sought to refer the papers to the DPP last May.

The bank stopped him by way of an injunction, but in July Mr Honohan went further and struck out the AIB case against Angela Farrell.

The bank has now been granted permission by the High Court to expand the scope of its action against Mr Honohan - by allowing it to challenge his dismissal of its case.

Lawyers for AIB claim Mr Honohan acted beyond his powers and that his conduct was so inappropriate, irregular and unacceptable that a reasonable observer would form a view that he was not in a position to give the bank a fair hearing.