A company at the centre of the horsemeat scandal has begun High Court proceedings for breach of contract against a Polish supplier.

The ABP Group is taking the case against the company Food Service relating to their supply of beef containing equine DNA to Silvercrest Foods.

This is the first legal action to be undertaken by an Irish company against foreign meat suppliers arising from the horsemeat contamination scandal.

Silvercrest Foods lost its contract with Tesco, Aldi and the Co-operative Group in the UK for the supply of frozen beef burgers in the wake of the horsemeat controversy.

In April the ABP Food Group agreed a deal to sell the Silvercrest facility at Ballybay, Co Monaghan, as part of its plan to exit the frozen burger sector in Ireland.

Meanwhile, ABP has also agreed to accept a financial settlement from Norwest Foods for supplying Silvercrest with beef containing equine DNA.

In a statement Norwest Foods acknowledged that it may have "unknowingly and unwittingly supplied contaminated beef products" to ABP.

Details of the financial settlement have not been made public.

ABP said that the company has always insisted that it never knowingly provided beef that contained equine DNA to any of its customers.