A CHAPTER in a long-running saga over the finances of Swindon Town Football Company Limited was today settled in the Court of Appeal.

Top judges overturned a High Court ruling which ordered the company to pay former club advisor and shareholder Michael Diamandis £300,000.

The money was held by the court pending the outcome of today's hearing, but Master of the Rolls Lord Neuberger - sitting with Lord Justice Sedley and Lord Justice Toulson - directed it should be paid back to the company.

Lord Neuberger told the court Mr Diamandis was a major shareholder in Swindon Town Football Club (STFC), which went into administration in March 2008 and is now in liquidation.

In April last year, Mr Diamandis went to the High Court to seek a winding up order, claiming the company owed him nearly £250,000 in management fees, trade debt and a personal loan but was unable to pay him as it was insolvent.

However, this was strongly contested by the company, which said it was able to pay any debts but there was a "substantial dispute" as to the amount involved and who it was owed by.

The company took its own High Court action, in an attempt to stop Mr Diamandis from getting the winding up order in July last year.

But the company's case was dismissed by Mr Justice Peter Smith, who said the evidence he heard "entirely supported" Mr Diamandis, and the company had failed to provide "credible evidence" to back up its claims.

Challenging that ruling today, Hilary Stonefrost, for the company, said the judge hadn't taken enough account of letters and other documents which supported its case.

She argued it was "unclear" from this documentation whether the £123,000 Mr Diamandis claimed he was owed in management fees should have been paid by the company or by the Wills family.

Grant Anderson, for Mr Diamandis, argued the judge correctly applied the law to the facts of the case and that the evidence supported his client's case that the company was indebted to him in the amount claimed.

Allowing the appeal, Lord Neuberger said there was a "strong case" for saying the agreement to pay the former club advisor was with the Seton family and not the company.

The judge said the £300,000 paid into court by the company - made up of the £250,000 alleged debt and £50,000 court costs - should be returned to the company.

He also ordered Mr Diamandis to pay 70 per cent of the company's court cost.

Mr Anderson said Mr Diamandis will now take further court action against the company in a bid to get the money he claims is owed to him.