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By Matthew Bates Thursday 20 December 2012 Updated: 24/12 11:35
ASDA is set to re-apply for planning permission to build a supermarket directly opposite a parade of local shops.
It comes after traders in Daventry Road, Cheylesmore, won a battle to overturn a city council decision to approve the plan for the old Cheylesmore pub site.
The u-turn was made by a High Court judge, who ruled council chiefs had formatted the January decision in the wrong way.
Chair of the planning committee, Coun Kevin Maton, admitted 'hundreds' of approved applications had the same error - opening them up to judicial reviews - but said the deadline for issuing them had passed.
He said all applications made since the Asda decision had been fixed.
But Cheylesmore councillor Kevin Foster said the decision had left the council with egg on their face.
He added there was deep dissatisfaction over how the council dealt with the issue.
Asda spokesman Oliver Jones said he was disappointed at the decision and the original application would be sent back to the planning committee.
He added: "We hope they come to the same conclusion.
"The council have behaved really well and done a great job."
Coun Maton, who had the casting vote after councillors were split on the issue, said the decision had not been unlawful.
"It was nothing to do with the merits of the ASDA proposal or with how planning committee reached its decision to approve their application.
"Indeed the same format was used for our decision to approve the community centre application on the same site in Cheylesmore and this could have been subject to a legal challenge too."
He added the new application would be freshly examined as new issues could have emerged since January.
It is not known when the new application will be submitted.
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