Circuit Court Judge John Buckley yesterday refused an application to strike out defamation proceedings brought by the Taoiseach, Mr Ahern.
The case is against Cork businessman Mr Denis O'Brien, whose lawyers made an attempt to have the matter dismissed on grounds that the action had been brought in the wrong court jurisdiction.
The action, which will now go ahead in the Dublin Circuit Court, arises out of a claim by Mr O'Brien, of Ballyharoon House, Glanmire, Cork, that he had given the ail leader Taoiseach £50,000.
Mr Paul Gallagher SC, and Mr Rory Brady SC, with Mr Jim O'Callaghan, counsel for Mr Ahern, had also earlier asked Judge Buckley to grant judgment against Mr O'Brien on the grounds that he had failed to deliver a defence to the Taoiseach's action. This application was also refused by Judge Buckley, who allowed Mr O'Brien until January 15th to enter a defence.
