Several Fianna Fail deputies now believe Mr Hugh O'Flaherty should be invited - or possibly compelled - to appear before an Oireachtas committee, as a growing number of backbenchers openly criticise the Government's handling of the affair.
With the party still in shock following its worst-ever by-election performance, backbench anger will be expressed at next Wednesday's meeting of the parliamentary party.
While Government sources maintained last night that the nomination would stand, the Minister for Public Enterprise, Ms O'Rourke, gave a non-committal response to a question as to what the Government would think if Mr O'Flaherty declined the nomination.
"That's another matter," she said, "And it's entirely at this moment hypothetical".
At least two of the 10 Fianna Fail members of the Oireachtas Committee on Justice, Equality and Women's Rights are resisting leadership pressure to vote down a Labour move to compel the judge to give evidence on the Sheedy affair.
The Government faces another week of controversy over the issue before the Dail rises next Friday until October. The matter will be debated in the Dail chamber, at an Oireachtas committee and at Fianna Fail's parliamentary party meeting this week.
The Cork North Central deputy, Mr Billy Kelleher, yesterday joined other backbenchers who have criticised recent performance, saying that in the past the party had put down internal dissent on the O'Flaherty nomination "like a Cromwellian revolt".
Several other deputies expressed concern yesterday but did not want to be named. They join Mr Dick Roche (Wicklow), Mr Noel O'Flynn (Cork North Central), Mr John McGuinness (Carlow Kilkenny) and Mr Conor Lenihan (Dublin South West), who were quoted in yesterday's Sunday Business Post as being concerned about the by-election disaster and the O'Flaherty affair.
Fianna Fail unease is also apparent on the Oireachtas Committee on Justice, Equality and Women's Rights, which will tomorrow consider the Labour motion to invite, and consider compelling, Mr O'Flaherty to give evidence on the Sheedy affair.
It is understood that the party leadership has sought to instruct its TDs and senators on the committee to use their majority there to defeat the Labour motion. However, several of the party's 10 members on the committee are unhappy with this plan. Fine Gael will support the Labour motion.
One Fianna Fail committee member, Ms Marion McGennis TD, said last night that she believed her party should examine the Labour motion and not simply rule it out in a partisan way. She said she had told the Taoiseach of her view.
The chairman of the committee, Mr Sean Ardagh TD, said yesterday that the Fianna Fail members would meet at 4 p.m. tomorrow, an hour before the committee itself meets. It would be a matter for the committee members themselves to decide at that meeting, he said.
Fianna Fail has a majority of one on the committee. The Progressive Democrats, who have no representation on the committee, say it is a matter for Fianna Fail.
The Dail will debate the controversy tomorrow and on Wednesday evening, after Fine Gael tabled a private member's motion condemning Government behaviour over Mr O'Flaherty, inflation and other issues.
However, the motion appears to have no prospect of success. The Kerry South Independent, Mr Jackie Healy-Rae, yesterday ail move and said he would be supporting the Government.
There was no indication from any of the other Independents who traditionally vote with the Government - Mr Harry Blaney, Ms Mildred Fox and Mr Tom Gildea - that they would oppose the Government, although none of them could be contacted for comment.
According to Mr Healy-Rae: "Fine Gael should stop this codacting every Tuesday, Wednesday and Thursday, of going back 20 or 30 years and neglecting the business of the country."
The Limerick law lecturer, Mr Denis Riordan, says he intends to lodge a Supreme Court appeal and a fresh application to injunct the application tomorrow.