A COMPANY director told the High Court yesterday he was asked by a solicitor to write a

7 million cheque related to an

18 million land deal in Co Offaly although he had told the solicitor he didn't have the funds in his bank account.

Martin Conway, a director of a company involved in the land deal, described by Mr Justice Peter Kelly as a "scam", said the solicitor, John Duffy, of John Duffy & Company solicitors, Main Street, Monasterevan, Co Kildare, had told him it "didn't matter" that he didn't have the funds to meet the cheque and that the cheque was for "securing a loan".

He understood the cheque was to be held by Mr Duffy and would never be cashed, he added.

Mr Justice Kelly heard that Mr Duffy remained in the psychiatric unit of a midlands hospital. Mr Duffy had been ordered to appear before the judge last Friday to answer questions about the land deal but the court was told he was in a psychiatric unit.

Yesterday, the judge said he had received an e-mail from a consultant psychiatrist who had yet to examine Mr Duffy. The judge heard Mr Duffy was to be examined yesterday and it was hoped there would be a report on his condition at the end of this week.

Mr Séamus Noonan, for the Irish branch of Investec Bank (UK) Ltd, which had loaned

8 million on the land deal but has not been repaid, said the bank believed Mr Duffy "holds the key to this".

After hearing testimony from Mr Conway and from Sharon Clarke, both directors of Conway Clarke Properties Ltd, the judge said he was going to hold a "full investigation" into what had happened and there were clearly disturbing features to the case.