The High Court has found that the company appointed to operate the National Aquatic Centre, Dublin Waterworld Ltd, has deliberately breached its lease.
The court has granted an order for possession of the building to Campus and Stadium Ireland Development Ltd, the State company which owns the centre.
It found that Dublin Waterworld Ltd, which was granted the lease for the centre in April 2003, had breached that lease by consciously and wilfully failing to pay rent and failing to produce audited accounts.
The court also found that DWL had breached the terms of its agreement with CSID by holding the lease in trust for a Limerick businessman, Pat Mulcair.
Mr Justice Gilligan found that even though DWL had now regularised its financial situation, the 'background circumstances' of what had gone on did not augur well for the future.
The Chief Executive of CSID, Donagh Morgan, told RTÉ News that the Aquatic Centre would not close down.
Dublin Waterworld Limited refused to comment after the judgment.
The exact terms of the order for possession of the building will be finalised at a further hearing next week.
O'Donoghue has questions to answer - Burton
Labour's Joan Burton has claimed that Sports Minister John O'Donoghue has serious questions to answer about how the Government structured the original deal.
In particular, she insisted that the minister must clarify how Dublin Waterworld Ltd was allowed a lease and trust arrangement with a third party, businessman Pat Mulcair.
Deputy Burton claimed that valuable tax benefits might have been conveyed on the parties involved as a result.
