A decision on costs relating to the Kaupthing Singer and Friedlander affair was postponed by Deputy Deemster Corlett at Douglas courthouse today.

After hearing arguments on behalf of the Depositors' Action Group, the Treasury and the failed bank's liquidators for around two hours, he chose to reserve his judgement, saying it was too complex an issue to decide on immediately.

DAG is claiming Treasury should pay its legal expenses incurred because of the government's failed Scheme of Arrangement.

The group's advocate this morning argued Treasury was the main force behind the scheme, with the liquidator very much taking a back seat.

He said the scheme was rejected and therefore it was down to the Treasury to cover costs which DAG wouldn't have otherwise incurred.

He also argued they should be dated back to November of last year, when the scheme was first mooted, a claim rejected by the Treasury.

Through its advocate, the Treasury countered that the scheme found favour with a great number of depositors and it was the structure of the voting which led to its rejection.

Costs should therefore be paid by the company, which DAG doesn't want to happen as it would reduce the pot of money available to depositors.

Deputy Deemster Corlett said he would produce a written judgement as soon as possible.

He also hit out at the Island's insolvency laws, saying the case showed they were sadly lacking and needed looking at by Treasury.