The UK Supreme Court has dismissed a legal bid by Tesco to stop Asda from building a large store close to one of its supermarkets.

The row began in 2010 when Asda was granted permission to build a new store on the site of a former NCR factory on the outskirts of Dundee. But Tesco, which has an established store nearby, challenged the decision by the local authority, claiming that Dundee City Council had failed to follow its own planning policy in allowing the development.

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The Court of Session, Scotland’s highest civil court, had ruled that the council acted correctly, Tesco then took the case to the Supreme Court, which also ruled the council had not made an error in interpreting its policy.

Similar rows have erupted between the companies in East Kilbride and in Larkhall.

In East Kilbride it was Asda which sought a legal ruling against planning permission granted to Tesco.

(H)