Plans to build a student village next to a toxic Birmingham chemical factory have been blocked by the High Court.
Lawyers for the MacDermid metal finishing plant in Digbeth successfully applied for a judicial review into Birmingham City Council's decision to grant planning permission for the Curzon Gateway scheme at Eastside.
The village, if built, would provide a new gateway to Eastside with 260 flats, shops, bars and restaurants.
MacDermid argued that the council had failed to give due consideration to the advice of the Health and Safety Executive, which warned of " substantial concerns" about the proximity of dwellings in the event of a major accident at the plant.
Birmingham City Council described the judicial review as a "temporary blip" and said it was confident the development would go ahead.
More than 2,000 people already live inside a danger zone surrounding the factory.
Last year, all homes within 250 yards of the factory had to be evacuated after a chemical spillage.
MacDermid claims the development plan, which was described in court as important to the future regeneration of Birmingham, is too close to a storage area for toxic chemicals.
The facility is considered a "top-tier" site, and is entitled to hold up to 193 tonnes of very toxic substances, 190 tonnes of toxic substances and 115 tonnes of oxidising materials at any one time. Occupants of the new flats would be living so close to the plant that they would be at risk of harm in an emergency, MacDermid claim.
The Health and Safety Executive recommended that the application should be considered at a public inquiry and then passed to the Deputy Prime Minister.
The council ignored the advice and granted approval in January.
Emrys Jones, then the chief planning officer for Birmingham, told councillors at the time that the scheme should go ahead.
Legal advice suggested that the council could overrule the HSE as long as it gave careful consideration to safety concerns, Mr Jones said.
MacDermid is objecting to two separate planning decisions.
One is for the development of Bordesley Street, Typhoo Wharf, Digbeth and the other for the Castle Cement site at Curzon Street.
Lawyers for MacDermid told the High Court that the council failed to give "most careful consideration" to the advice given by the HSE, and failed to give adequate and sustainable reasons for not following it.
The company also disputes how close the development will come to its facility.
Mr Justice Sullivan, a leading planning judge, granted MacDermid permission for a judicial review to be heard later this year.
In the meantime, development of the site cannot take place.
Councillor Ken Hardeman (Con Brandwood), cabinet member for regeneration, said afterwards: "We are disappointed with the outcome and will be reading the judgment with care and assessing its implications for future projects, but we regard this as a temporary blip and we are confident we will be able to roll out our plans for the regeneration of Eastside as a vibrant new city quarter."