The long-running saga that is the fight to build a new supermarket in Dawlish has taken yet another turn after Tesco was told it could challenge the planning permission granted to arch rival Sainsbury's for a store at Shutterton Bridge.

Last week the High Court said the decision by Teignbridge Council to approve the Sainsbury's bid was worthy of further scrutiny.

The authority's development control committee passed the scheme last year saying it met the town's needs.

Tesco's plans for a store on part of the Lady's Mile Holiday Park, considered a few weeks later, were rejected. The committee was satisfied that only one store was needed and that Sainsbury's had won the race.

But the judge looking into the case favoured the argument put by Lady's Mile owners Alfred and Joan Jeffery who said the council had failed to give its development committee all the facts, such as a previous refusal for a Sainsbury's store at Shutterton.

After the finding Mr Jeffery said he would not comment in detail as he did not want to prejudice the outcome of any further hearings.

'It's up to the council to do what they will do, although they could save the town a lot of money by simply quashing the planning permission given to Sainsbury's,' he said.

Phil Shears, the authority's deputy chief executive said: 'The judge specifically said that he was not expressing a view on the strength of the arguments, but did feel that they were worth further consideration by the court.

'We have kept the issue under review throughout this process, and will consider our position in light of the court's decision.'