A Belfast High Court judge has said police must investigate why staff at a filling station sold petrol to a "heavily intoxicated" man at 5am.
Hugh Fitzsimons, of Colinview Street in the city, has since been charged with arson with intent to endanger life.
The court was told the 21-year-old poured petrol on a house in Holywood and ignited it. The occupants escaped but damage put at £2,000 was caused.
He was released on bail under a series of stringent conditions.
'Too drunk'
A prosecution lawyer told the bail hearing that several hours after being arrested on 3 June, the accused was still too drunk to be questioned by police.
The judge said he was shocked that Mr Fitzsimons had been served a canister of petrol by Tesco in Knocknagoney given the state he was in.
The judge ordered police to submit a written explanation as to why filling station staff served "a man who was so intoxicated he could not be interviewed by police until 5pm the following day".
The Crown lawyer said after Mr Fitzsimons fell asleep at a drunken house party at Cedar Grove in Holywood, he awoke to find silicon sealant smeared on his face as a "prank" and "became quite annoyed".
The court heard that after a row erupted, he went off to buy the petrol before coming back to douse the house and light it.
The lawyer said he made "a full admission" to police, saying he wanted to "scare the people inside because of what they had done to his face", adding that he found it difficult to breathe when he woke up.
A defence barrister said his client "realises the recklessness and seriousness of his actions and is remorseful".