British media giant Northern & Shell has launched a court battle in the Republic over the $38 million (€26.8 million) sale of an executive jet.

Northern & Shell, which owns Express Newspapers, OKmagazine and a number of television interests, is taking the action against a Cork-based company, Castlelands Construction Company Ltd.

It claims the defendant sold the jet to a third party after agreeing to sell it to Northern & Shell.

The case was admitted to the Commercial Court yesterday by Mr Justice Peter Kelly.

Northern & Shell is seeking to prevent Castlelands from selling the Gulfstream G450 aircraft to any third party and is claiming that it owns the aircraft. It claims Castlelands, owned by John Barry, breached its obligation to sell and deliver the Gulfstream which, it is claimed, the media company had agreed to buy for $37.9 million.

In papers lodged in court, Robert Sanderson, group finance director of Northern & Shell, said the company decided in June to buy an executive jet and placed an order with an airline broker for delivery of a G450 jet in 2010.

In July Northern & Shell was told that a new Gulfstream aircraft could be on the market via an Irish aviation broker and it was agreed to purchase that aircraft pending delivery of the other aircraft.

The price of $37.9 million was agreed and an initial deposit of $500,000 was paid in July, he said. However, on September 4th the London-based aviation broker initially used by Northern & Shell informed the company that the aircraft had already been sold.

Mr Sanderson said Northern & Shell has learned that Castlelands took delivery of the aircraft from Gulfstream early in October and immediately passed title to a third party.

The media company had also become aware that the aircraft at the centre of the dispute is being offered for sale on the internet for $43.9 million, $6 million more than Northern & Shell agreed to pay for it, he said.

According to Companies' Registration Office documents, Castlelands Construction's directors are John and Elaine Bridget Barry. Castlelands is based in Mallow, north Cork. Earlier this year, it bought Douglas Golf Club on the outskirts of Cork city from its members in a cash and land swap deal valued at €171 million.