The High Court has dismissed an application by AIB to have broadcaster and former Fine Gael minister Ivan Yates declared bankrupt.

In a judgment today, Ms Justice Elizabeth Dunne found that a bankruptcy summons issued by the bank in respect of Mr Yates, arising out of his alleged failure to satisfy a €3.69m demand by AIB, was invalid.

The judge said this was because Mr Yates had raised "real and substantive issues" in respect of the amount sought by AIB.

These issues had "some prospect of success" and have to be "litigated outside of the bankruptcy process".

For that reason, the judge said she was dismissing the bankruptcy summons.

The bankruptcy summons was issued last May in respect of a sum of €3.69m claimed by AIB.

AIB claimed the money was due on foot of a guarantee, dated April 2010, between it and Mr Yates where AIB claims he agreed to pay on demand all the liabilities due and owing by Celtic Bookmakers.

The bank served a demand for payment of the money on Mr Yates in April 2012.

Lawyers representing Mr Yates had argued before the High Court that the summons was invalid on several grounds, including that the amount being sought by AIB was overstated.

The validity of the summons was also challenged on the basis that Mr Yates was not served with a valid four-day demand notice, and that the bank did not demand payment of the debt on more than one occasion before applying to have the summons issued.

It was further claimed that before it sought to have the summons issued, AIB did not lodge all the required relevant documentation with the proper office.

AIB had rejected those arguments and said that the summons was valid. Mr Yates was not present in court today.

In her judgment, Ms Justice Dunne noted that it was claimed on Mr Yates's behalf that the amount sought by AIB was overstated in a number of ways.

He had claimed there was an overpayment in respect of fee of €162,000 to the receiver of Celtic Bookmakers Neil Hughes.

It was also claimed that the cost of the receivership would be a maximum of €100,000.

These claims, the judge noted, were denied by both Mr Hughes and AIB.

Another issue was a claim that AIB continued to charge interest on the amount owed after the receiver was appointed to Celtic Bookmakers in January 2011.

The judge said Mr Yates had claimed that after Mr Hughes' appointment it had been represented to him that interest running on the debts would be frozen.

When interest continued to accrue Mr Yates claimed he was told by officials from AIB that these charges would not be pursued, the judge said.

However, a sum of €240,000 that accrued after January 2011 has been pursued by AIB.

In reply, the judge added, AIB said that no agreement was reached with Mr Yates that it would suspend interest payments.

On this basis, the judge said that she was satisfied that in relation to the amount allegedly due, Mr Yates had raised issues that had to be litigated separately outside the bankruptcy process.

"The issues are real and substantial and have some prospect of success," said the judge dismissing the summons.

Ms Justice Dunne found that some of the other issues raised did not give rise to a basis for dismissing the summons, while it was not necessary to decide on other issues advanced by Mr Yates.