Southend Council has been given the go-ahead to challenge a decision that two children can to join a popular school which had previously refused them places.
The authority fears it may have to pay for an extra classroom and teacher if the ruling that the two youngsters can attend Bournes Green Infant School in Thorpe Bay is upheld.
Yesterday, Mr Justice Ognall, sitting at the High Court in London, gave the council permission to seek judicial review as a matter of urgency. The case is expected to be closely watched by Education authorities all over the country.
At a full hearing later this summer, the council will ask the court to declare that Southend Borough Education Appeals Committee acted unlawfully and irrationally in allowing an appeal by parents against its refusal to admit two more children to the school.
New Government legislation requires that from the year 2001 to 2002, all infant classes have a maximum class size of 30 pupils being taught by a single qualified teacher.
If the maximum is exceeded, schools will have to recruit more teachers.
The authority will argue in court for the right to refuse to admit additional children to a particular school if an extra teacher has to be employed, or an extra classroom provided to comply with the Government's new limits on class sizes.
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