NIG is set to face a showdown with one of Glasgow’s oldest and most celebrated restaurants, The Buttery.

The restaurant is set to take the RBS-owned insurance company to the Financial Ombudsman Service after it suffered a catastrophic fire in December 2006, resulting in its closure.

The Buttery alleges that NIG refused to pay the claim in its entirety, triggering the sale of a restaurant.

Ian Fleming, former owner of the restaurant, said: “The handling of our claim has certainly not been in harmony with written FSA guidelines, and we will now be vigorously pursuing the case with the Financial Ombudsman Service .”

A spokesman for NIG, said it would be inappropriate to comment on the claim as it was being dealt with by the Financial Ombudsman Service.