The council had appealed against one of the damages claims but the Appeal Court accepted the argument that they should be allowed to continue with their claims for damages for "public nuisance" from the couuncil.

The 18 claimants were all born between 1986 and 1999 with deformities of their upper limbs.

Their mothers lived close to land which Corby Council had acquired with view to reclamation and redevelopment from the British Steel Corporation.

The claimants allege their mothers were exposed during pregnancy to toxic materials as part of the council's reclamation and decontamination programme and that this was the cause of their deformities.

As a result they launched their damages claim which included the claim for compensation for "public nuisance".

The council challenged that aspect of the claim but the challenge was rejected by a High Court master and today it was rejected by the Court of Appeal.

Dismissing a challenge against the master's ruling and paving the way for the council to be sued for the alleged public nuisance, Lord Justice Dyson said: "I do not consider it is open to this court to decide that damages for personal injury are not recoverable in public nuisance.

"It cannot be said that this claim has no real prospects of success."

The full hearing of the damages action, which is expected to last 38 days, is now scheduled to take place in the High Court in February next year.