Walden Motor Co Ltd, which owns extensive property in Dublin city centre, yesterday disputed in the High Court a claim by a company linked to property developer Liam Carroll that it had a deal to purchase some of Walden's Dublin city centre properties for almost €5.9 million.

Mr Paul Gardiner SC, for Walden, said his client was anxious to conclude a sale to another developer before June 30th to avail of tax incentives.

During the hearing, the parties agreed to Mr Justice Kelly making an order vacating a lis pendens (a notice indicating that litigation is pending regarding a property), which had been registered against Walden by Mr Carroll's company, Danninger Ltd.

Other legal proceedings brought by Danninger seeking specific performance of an alleged oral agreement made between the parties was adjourned until today when Walden lawyers will seek to have those proceedings struck out.

Mr Gardiner said Mr Carroll, whom he described as the biggest property developer in Dublin, was the principal behind Danninger and was claiming there was a concluded oral agreement with Walden to purchase 14 lots of properties in Parnell Street and Granby Place for €5,874,345.

Counsel said Mr Carroll alleged the contract had been entered into on an unspecified date, which was of some significance as the heads of agreement signed by the parties was dated March 15th, 2002, and contained the words "subject to contract".

Mr Louis Healy, solicitor for Walden, said in an affidavit that all correspondence between the parties was headed "subject to contract/contract denied". In a letter of March 14th last, he had informed Mr Carroll's solicitors that Walden proposed to withdraw from the proposed sale.

Mr Carroll, in an affidavit, said a critical element in negotiations was the desire of Walden that Danninger construct student accommodation on adjoining lands so that Walden would avail of tax relief.

Mr Carroll said that he understood there was a binding agreement between the parties.