Organist Dr Martin Neary is appealling against his dismissal at the Council Chamber of the Judicial Committee of the Privy Council in Downing Street.

The four hour closed-door hearing in London, on Thursday, was expected to have been taken up in legal argument.

Legal sources said the appeal is expected to last four or five days, which may be spread over more than one week.

It will reconvene on 18 August.

Financial irregularity

The Dean of Westminster Abbey, the Very Reverend Wesley Carr, Mr Carr left the hearing flanked by Michael Middleton, Canon Treasurer and Press Officer John McAngus.

He refused to comment on the morning's proceedings, as did lawyers for Westminster Abbey.

Dr Neary, who was honoured by the queen for organising the music for the funeral of Diana, Princess of Wales, was sacked by the Dean and Chapter in April for alleged financial irregularity.

Dr Neary arranged the music for the funeral of Diana, Princess of Wales

The move followed an investigation by the auditor and the canon treasurer concerning the money earned by the Abbey's music department.

It centred on the founding of a company called Neary Music Limited which allegedly handled Abbey choir contracts and "retained surplus monies".

The appeal is being heard by Lord Jauncey, of Tullichettle, a retired Law Lord who was appointed by the Lord Chancellor, Lord Irvine, on the Queen's behalf.

The exact format of the hearing has not been made public, although it is understood that it will be held along similar lines to judicial proceedings.

The Registrar of Lincoln Cathedral Derek Wellman, a solicitor specialising in ecclesiastical law, said the hearing was unprecedented.

'A lot of head-scratching'

He said: "What's happening at Westminster Abbey is rather a one-off. The Abbey doesn't fall into normal ecclesiastical procedures."

Because the Abbey is neither a parish church nor a cathedral, but a "Royal Peculiar", it comes under the authority of the Queen rather than the Bishop of London.

Usually, the statutes of a cathedral will lay down that disputes between employees and the Dean and Chapter should be referred to the Visitor, who will generally be the Bishop of the Diocese.

But in the case of Westminster Abbey, the Visitor is the Queen.

Mr Wellman said: "There must have been a lot of head scratching, because I don't think anything like this has happened before."

The organ at Westminster Abbey

Lord Jauncey has been given the title of special commissioner for the case, and it will be up to him to decide how the appeal is heard.

It is not known how quickly Lord Jauncey will report his findings, which will be made to the Queen rather than the Lord Chancellor.

Former Tory Prime Minister Sir Edward Heath has submitted written testimony to the appeal hearing on the good character of Dr Neary, who he has known for nearly 40 years.

Other character witnesses are reported to include former Tory Cabinet Minister John Gummer, former Labour Social Security Minister Frank Field and the former Bishop of Winchester, John Taylor.

Mr Gummer met Dr Neary at Cambridge University more than 30 years ago.

He claimed the case had already cost the Church of England more than £220,000 in legal fees, while Dr Neary could be facing costs of around £100,000.

The appeal coincides with the release of a CD by Dr Neary entitled Perfect Peace.

Church insiders say that if Dr Neary is reinstated then the Dean of Westminster will find himself in an impossible position and be forced to resign.