Sports Direct owner Mike Ashley has failed in his High Court bid to have Rangers chairman Dave King jailed for breaching a gagging order.
Mr Ashley’s company launched legal action against the Ibrox club and its chairman over an alleged breach of an injunction.
Mr King was accused of breaking undertakings by giving a media interview in which he revealed the existence and contents of meetings related to contracts with Sports Direct.
The interview took place in South Africa and was filmed for Sky Sports in July.
Mr Justice Peter Smith, sitting in London, said after a morning hearing that he intends to reject the jailing application for reasons he will give this afternoon.
The legal action is the latest development in a conflict which has arisen since Mr King took over running Rangers and centres on the commercial arrangements between the club and Sports Direct and its subsidiaries.
The application to commit Mr King to prison was made by David Quest QC, appearing for Sports Direct and Mr Ashley, the owner of Newcastle United.
The QC told the judge: “This present litigation is born out of Sports Direct wanting, so far as it is lawfully entitled, to keep these commercial arrangements confidential under the terms of a written confidentiality undertaking.”
He said the interview complained of took place in South Africa and was filmed for Sky Sports in July.
But the judge wondered aloud what was the point of both sides spending some £400,000 on the legal action.
The judge queried whether Mr Ashley was interested in having a “sensible“ business relationship with Mr King “or grinding him into the dust”.
The judge said: “Maybe he is interested. I don’t know.”
Mr Quest said Mr King had stated that he had no recollection of whether or not he said the words complained of from the Sky Sports interview.
But the court was entitled to draw inferences against him to the criminal standard required for an individual to be jailed for contempt.
The judge replied: “I am not going to send a person to prison on an inference.”
He also expressed concern that Mr King was not being called to be cross-examined in the witness box, but reliance was being placed on media reports.
Whilst ruling that there were no grounds to jail Mr King, the judge stressed the case was not over yet as he was “merely dismissing” the application for a jailing order.
The judge said he had not decided yet whether Mr King was in breach of his undertaking.