Western Isles Council is being sued for £23m in a row over a 170-year-old castle.

Cala Hotels claims the local authority unlawfully awarded the lease of the Lews Castle in Stornoway to hospitality firm Natural Retreats.

The castle is due to reopen on March 6 as a hotel and museum following a £19m publicly-funded revamp.

Cala was barred from taking legal action against the council after judges ruled that the company had waited too long.

However, that ban was lifted on Friday following an appeal at the Court of Session in Edinburgh.

After receiving permission to sue, managing director Kenneth Mackenzie said: "We welcome the appeal court's decision and the opportunity it provides for the substantive merits of our case to be heard at last."

Western Isles Council said it had noted the judgment.

A council spokesman said: "This decision was not about the merits of the case and the claim for damages will now proceed to be determined by the Court of Session.

Angus Campbell, council leader and chairman of the Lews Castle project board, said: "The council remains confident that its processes in the awarding of the contract were proper and competent.

"The restoration and development of Lews Castle is hugely popular and already provided a major economic boost for the islands."