The legal challenge of Beechworth Lawn Tennis Club against the decision to deny its application in the government's controversial sports grants scheme will continue in the Federal Court next month.
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The details of claim submitted to the court reveal the club wants the court to direct the Australian Sports Commission to "quash its decision" not to grant funding for the tennis courts development and require it to reconsider the application.
The tennis club has also asked the federal to declare the decision to refuse the grant application was "affected by such jurisdictional error".
The club sought $500,000 for new courts and received a merit score of 78 out of 100, but was rejected for cash, telling a Senate inquiry this year the process was "comprehensively corrupted".
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The final decision on the grants was made by the office of Wodonga senator and then sports minister Bridget McKenzie, who has said she makes "no apology for applying ministerial discretion to ensure fairness across funded projects".
She did resign from her ministerial position because she did not declare her membership to Wangaratta Clay Target Club.
Beechworth Lawn Tennis Club has also asked the Federal Court to direct the Australian Sports Commission to quash the $35,980 given to the clay target club under Senator McKenzie and declare it "was made without lawful authority".
Wangaratta Clay Target Club and Indigo Council have both joined the legal proceedings as respondents.
The case will return to court in December for a case management hearing.