Dekra Éireann Teoranta, a company that failed to secure the tender to provide the national car testing service, cannot continue legal proceedings challenging the awarding of the contract to a rival company in 1998, the Supreme Court ruled yesterday.

The then Minister for the Environment and Local Government, Mr Dempsey, awarded the contract to establish and operate the system for testing private cars in this country to SGS Ireland Ltd.

Dekra issued judicial review proceedings against the Minister on March 25th, 1999, challenging that decision.

On June 15th, 1999, SGS sought to strike out Dekra's proceedings on grounds that Dekra had not complied with time limits prescribed under court rules.

The High Court refused the application of SGS and, in November 2001, decided to exercise its discretion in favour of extending the time limit. Both SGS and the Minister appealed the High Court decision to the Supreme Court.

In a reserved judgment yesterday, the Supreme Court allowed the appeal.

It set aside the High Court order granting an extension of time to Dekra and refused its application for judicial review of the public contract in issue.

The invitation to tender for the introduction of a system of roadworthiness testing here was issued on July 7th, 1998. On November 24th, 1998, the Minister notified Dekra by phone of the decision to award the contract to SGS and issued formal notification to Dekra in writing. A press release announcing the decision to appoint SGS, subject to contract, was issued.

On December 8th, 1998, there was a debriefing meeting between Dekra and Mr Dempsey.

Giving judgment in the Supreme Court yesterday, Ms Justice Denham said it was clear that grounds for Dekra's application for leave to take judicial review proceedings existed by December 14th, 1998. The time for bringing the application ran from that date.

However, proceedings were not issued until March 25th, 1999, which meant it had failed to comply with the three-month time limit in court rules.