A dispute between Dunnes Stores auditors Oliver J. Freaney and Company and the committee investigating possible misconduct by some members of the Institute of Chartered Accountants in Ireland (ICAI), named in the McCracken report, has been settled at the High Court.

The institute had set up the committee of inquiry which is chaired by the retired Supreme Court judge, Mr John Blayney.

The inquiry has effectively been on hold since last summer following a decision by the Freaney firm to seek a judicial review of the committee's procedures. After the proceedings were struck out yesterday, the ICAI said in a statement that the Blayney hearings would resume in due course.

Freaneys had claimed the firm was not being given a fair hearing at the Blayney inquiry after members of its staff and partner Mr Noel Fox were questioned by the committee.

Freaneys acted as auditors to Streamline, Mr Michael Lowry's refrigeration business, and also as joint auditors to Dunnes Stores. When the four-day hearing was due to begin before Mr Justice O'Donovan yesterday, the parties asked for an adjournment. Later Mr John Gordon SC, for Freaneys, said that, with the consent of all parties, the proceedings could be struck out with no order.