Three High Court judges have begun hearing a challenge by TD Joan Collins to the issuing by government of promissory notes as part of the €31 billion recapitalisation of the banks.

The 'People Before Profit' deputy claims the payments are illegal as public monies cannot be dispersed by the Minister without the approval of the Dail.

Her lawyers are arguing that the Minister acted beyond his powers.

They say the State's legal team will argue that legislation granted the Finance Minister limitless powers to make commitments of support to financial institutions.

They argue that if this interpretation of the law is correct, it is akin to signing a blank cheque as the powers of the Minister would have no end in terms of amount and duration.

The TD also claims that section 17 of the IBRC Act 2013, which allows for the immediate liquidation of Anglo Irish Bank, is unconstitutional.

The case is to be heard over the next 4 days.

Pictured above: Joan Collins TD