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Christian Candy began his evidence in the High Court today over the Chelsea Barracks row between his company CPC Group and Qatari Diar.

On the first morning of the court case, the counsel for CPC described Qatari Diar鈥檚 decision to withdraw the planning application on 12 June 2009 as having 鈥渘o lawful justification鈥�.

Lord Grabiner, QC, said under the sale and purchase agreement between the two companies, Qatari Diar was 鈥減rohibited鈥� from withdrawing the application except in certain 鈥渄efined circumstances鈥�.

CPC central claim is that it was interference of the Prince of Wales that persuaded the Qataris to cancel the 拢3bn project designed by Lord Rogers.

Lord Grabiner, QC, referred to a letter written on 1 March 2009 by the Prince to Sheikh Hamad bin Jassim, the chairman of Qatari Diar, in which he said his 鈥渉eart sank鈥� when he saw the plans and urged him to abandon them.

CPC also pointed to evidence of a meeting on 11 May between the Emir of Qatar and Prince Charles at Clarence House, in which it claims an understanding was reached. According to notes taken by Sir Michael Peat, the Prince鈥檚 private secretary: 鈥渢he Emir was surprised by the Rogers designs for Chelsea Barracks and said that he would have them changed鈥�

CPC argued in court that Qatari Diar had the option at that stage to withdraw the planning application unilaterally but it would have been contractual obliged to pay CPC a deferred payment of upto 拢81m.

Instead, their barrister argued, Qatari Diar tried to 鈥渂roker a deal鈥� with Prince Charles whereby they gave him assurances that once planning was granted the Roger鈥檚 scheme would not be 鈥渂uilt out鈥� and that the Prince鈥檚 requirements would be accommodated.

CPC says it opposed this 鈥渟oft undertaking鈥� strategy because it would probably leak out and would damage the planning application.

CPC is seeking a declaration from the judge, Mr Justice Vos, that withdrawing the planning application was a breach of contract. If the decision goes in CPC鈥檚 favour it will launch a damages claim.

Candy, who was called as the first witness in the case and who is the 100% shareholder in CPC, faced questions from Qatari Diar鈥檚 counsel in the afternoon.

Joe Smouha, QC, questioned Candy over the role of his brother, Nick Cancy, in decisions on the Chelsea Barracks scheme.

In response Candy said: 鈥淣ick is a principle contact with Sheik Hamad鈥�.

Outlining the case for Qatari Diar, Smouha, argued that the company had been entitled to withdraw the planning application after being led to believe that Boris Johnson, the London mayor, was likely to refuse it.

He referred to notes from a meeting between Qatari Diar and the GLA on 7 May in which 鈥渕ajor concerns鈥� were made about the 鈥渞epetition鈥� of the Roger鈥檚 design and it was stated that Johnson wanted more 鈥渧ariety within the proposals鈥�.

Qatari Diar also challenged evidence that anything was agreed between Prince Charles and the Emir at the 11 May meeting.

Counsel argued that Sir Peat鈥檚 note was made three months after the alleged event and that it was 鈥渋nexplicable鈥� that he was not giving evidence in court to explain the time lapse.

Candy will continue his evidence tomorrow in the case, in which seven other witnesses will be called, is expected to finish by the end of next week.