Legal proceedings by German discount supermarket chain Lidl against Tesco Ireland over an allegedly misleading advertising campaign have been adjourned at the High Court to Monday next.

Last week, Mr Michael Collins SC, for Lidl Ireland, secured leave from Mr Justice Kelly to serve proceedings on Tesco Ireland, including an application for an injunction restraining Tesco from continuing an allegedly misleading advertising campaign relating to the prices of certain products sold in Lidl stores.

The case was returned to yesterday when Mr Justice Kelly heard some affidavits had been exchanged between the sides. He made directions for the further exchange of affidavits and returned the matter for hearing to Monday.

Mr James O'Callaghan, for Tesco Ireland, said his client was anxious the matter be heard as soon as possible.

At last week's hearing, Mr Collins said Tesco had placed a number of advertisements in newspapers on June 9th last which purported to compare, on the basis of visits to a number of Lidl stores on May 26th, the prices of certain goods sold in Lidl stores and Tesco stores.

He said some of the prices attributed to the Lidl products were incorrect while other prices quoted did not reflect a comparison of like with like. On the basis of the compared prices, Tesco claimed to be cheaper.

Lidl had opend its first store in Ireland in July 2000 and now had several stores. It claimed to be concerned about the effect of such misleading advertising, counsel said.

Lidl had written to Tesco asking it to desist from such advertising and had also complained to the Advertising Standards Authority and the Director of Consumer Affairs.

However, Tesco had refused requests to cease the advertising campaign and maintained the prices quoted were accurate.