Notification procedures at a council planning department are being overhauled after a landowner was wrongly-told he had permission to build new homes.
Plans were submitted to South Holland District Council to build the homes on Battlefields Lane North, Holbeach.
Landowner John Swepstone planned his retirement from business and was looking for permission to build seven homes on the site after demolition of existing buildings.
A report before a planning committee meeting which was held in March recommended the application be approved.
At the meeting, the matter was discussed and rejected by the committee but a notice of approval was mistakenly sent out.
On realising the error, the council was told that legally it had granted permission and the only way to get it overturned was by judicial review.
Legal papers have to be laid before the High Court in London and the technical approval overturned to correct the error.
But the landowner said he is unhappy with what happened and will be seeking an appeal on the decision as a result.
Coun Roger Gambba-Jones, portfolio holder for place and chairman of the planning committee, said: “Following a recent planning committee decision to refuse an application on land at Swepstones Ltd in Holbeach, an administration error was made and the decision notice with agreed reasons for refusal was issued with a heading of approval.
“Despite this obvious administrative error, case law dictates the consequence is that the decision notice constitutes a grant of planning permission.
“The council has taken legal advice on how to rectify this error and we are seeking to quash the decision in the courts via a judicial review.
“I have separately asked for a review of the planning department’s system of electronic delivery. Consequently, further checks and fail safes have been introduced into the process.”
The application site included a 1970s factory and documents with the initial proposal said the business was winding-down and would close in the “near future”.
Plans for the development of seven new homes were submitted and discussed by the council’s planning committee.
The decision to refuse the application was proposed by Coun Gambba-Jones and carried by members.
The committee was told the site presented an “unsustainable form of development” and it was also situated on the “wrong” side of the A17.
But Mr Swepstone said the initial letter had a clear heading of approval.
“They sent a letter to the architect saying the planning application was passed but then later they said it was refused,” said Mr Swepstone.
“It’s very debatable. Our agent isn’t very happy, he’s going to take action but I haven’t had time to talk to him.
“There’ll be an appeal,” said Mr Swepstone.
According to the application documents, the new development would have adjoined an existing settlement.
