Proceedings by the Irish Permanent against a number of defendants who had been sued together with former chief executive Dr Edmund Farrell are going ahead, the High Court was told yesterday. Mr Justice Geoghegan adjourned the hearing to Thursday next.

Irish Permanent's action against Dr Edmund Farrell and his wife Zora was settled in the High Court on Thursday, following prolonged discussions between lawyers for the sides. On Tuesday last, an action against another defendant, Dublin solicitor Stephen MacKenzie, who had acted as a legal consultant to the society, had been settled.

Yesterday, Mr Justice Geoghegan was told that proceedings against Mr Kelvin Smythe, a financial consultant, of Blackrock, Co Dublin, and two consultancy groups - Quaser Corporation of Delaware and Trivo, of the Isle of Man - are continuing.

Mr Justice Geoghegan adjourned the case until Thursday next to allow lawyers for the three remaining defendants time to consider a revised statement of claim and other documentation which it was submitted they needed following the settlement of the action against Dr Farrell. Irish Permanent agreed to make these available.

The judge rejected an application on behalf of the three remaining defendants that submissions in relation to those items and the net effect on them of the settlement against the other defendants should be dealt with as a preliminary issue before the full hearing.

At the start of yesterday's hearing, Mr Daniel O'Keeffe SC, for the three remaining defendants, submitted that following the settlement of the Dr Farrell case that an amended statement of claim should be served on his side.

In his application for further discovery from Irish Permanent, Mr O'Keeffe said that counsel for that side had suggested that the board connived with Dr Farrell for improper payments.

Mr O'Keeffe said he was concerned that this was the first time any documents in relation to a cover-up had been discovered. The case against his side was that there had been a failure to bring matters to the board's attention in June/July 1991. If the board was in the habit of conspiring with Dr Farrell, that would be an irrelevant allegation. His side wanted to know when it was alleged on behalf of Irish Permanent that this conspiracy to make improper payments to Dr Farrell had ceased. It appeared that for at least 18 months, all the directors knew what had taken place in relation to the Restrictive Covenant agreement.

Mr O'Keeffe said he was asking for discovery of all documents which indicated connivance between the board and Dr Farrell in relation to improper payments. He added that he was also concerned about the net effect of the two settlements with the other defendants on the proceedings involving his clients, having regard to the provisions of the Civil Liability Act. He said there could not be compensation on the double.

The total value of the claim against his side was £300,000 and £100,000. In relation to the £300,000 claim, it was undisputed that the money went to Dr Farrell, rightly or wrongly, and was used as an option to purchase Grasmere, a house in Foxrock. There was no claim his side got the money, added Mr O' Keeffe. The net effect of striking out the claim against Dr Farrell relating to a cottage in Co Galway was that most of it must equally disappear Mr Paul Gallagher, SC, for Irish Permanent, said his side would make available a revised statement of claim.