DUBLIN CITY Council has given permission to developer Liam Carroll to retain an office block that the courts ruled was built in breach of planning law.

The Dublin Docklands Development Authority (DDDA) originally gave the go-ahead for the development on North Wall Quay and New Wapping Street, which was valued last year at €83 million.

But in a case taken by rival developer Séan Dunne, the principal of Mountbrook Group, the High Court ruled last autumn that the DDDA had exceeded its powers.

The city council this week gave Mr Carroll's North Quay Investments a retention order for the building, which means the structure can be kept as it is.

However, the council points out that planning permission is being sought for further work needed to finish the building.

Responding to the decision yesterday, North Wall Quay Property Development Ltd, part of Mr Dunne's Mountbrook Group, said it "fully supports all sustainable development granted planning by any Government agency, provided same is subject to the same degree of scrutiny and transparency as our own planning applications are under the Planning and Development Acts 2000 to 2007".

The block is part of an overall €200 million project on the old Brooks Thomas site in the capital's docklands.

It surrounds on three sides development lands which Mr Dunne's operation owns.

The DDDA is allowed to certify projects that comply with the development plan for the area. This means that they do not have to apply to the city council for planning permission.

North Quay Investments agreed to give the DDDA part of the site for use as a "public space" in May 2007.

The High Court subsequently ruled that this could give rise to a "reasonable apprehension of bias".