A legal challenge by TD Joan Collins to the Government's use of promissory notes will be heard in October.

High Court President Mr Justice Nicholas Kearns said that a specially convened divisional High Court would hear the case because of the gravity of it and the issues raised.

The People Before Profit Alliance TD, who represents Dublin South Central, was recently given permission by the court to bring an application to challenge the next payment of the promissory notes, intended to pay for the €30bn recapitalisation of certain banks, including the former Anglo Irish Bank.

In her action against the Minister for Finance and the Attorney General, Ms Collins in her capacity as a TD, is seeking various declarations, including that the payments by the minister on foot of the promissory notes are unlawful and unconstitutional.

She claims the appropriation of public monies authorised by the minister otherwise than by a vote of Dáil Éireann is unlawful.

Ms Collins is also seeking a declaration that Section 17 of the Irish Bank Resolution Corporation Act 2013, which allowed for the immediate liquidation of the former Anglo Irish Bank, is unconstitutional.

Section 17 of the 2013 Act allows the minister offer securities in exchange for the redemption, release or cancellation of promissory notes.

Ms Collins further seeks a permanent injunction restraining the payment of any sums due on foot of any securities issued or created by the minister under Section 17 of the IBRC Act.

Ms Collins had, with a number of other TDs, unsuccessfully sought to be joined in an appeal over a similar challenge to the promissory notes brought by businessman David Hall.

The High Court ruled Mr Hall did not have the required legal standing to bring that challenge and he has appealed that decision to the Supreme Court.