The High Court has ruled businessman David Hall does not have the legal standing to challenge the State's use of promissory notes to bail out IBRC and EBS.

President Nicholas Kearns has found the case should have been brought and may still be brought by a member of the Dail.

Mr. Hall, who runs a private ambulance company, took this case as a citizen and a taxpayer in a bid to stop the State paying promissory notes amounting to €31 billion.

He argued the Minister for Finance adopted inappropriate procedures in issuing the notes without first putting it to a Dail vote.

In a written judgment President Kearns concluded Mr. Hall does not have locus standi to bring this challenge as he has not been prejudiced any more than any other taxpayer.

Appeal possible through TDs

Three TDs, Independents Shane Ross and Stephen Donnelly, and People Before Profit's Joan Collins turned up during the hearing to let the court know they were supporting David Hall.

Referring to the 2 Independents, the judge noted they are now 'threatening to vindicate their rights through the courts'.

He also found there had been significant delay in bringing the case given that promissory notes were issued by the Minister for Finance in 2010 and are now in their third year of operation.

He said financial institutions have proceeded on the basis that the notes are valid.

David Hall is one of the founders of the New Beginnings group of lawyers and businessmen who help out people in mortgage difficulties.

Tomorrow morning, his lawyers will apply to the Supreme Court for an urgent appeal to be heard ahead of the March deadline for the next promissory note payment.