A landowner is challenging a Scottish government decision to force it to sell a patch of overgrown ground to a community group.

Forthtay Ltd does not want to sell the strip of land in St Andrews to Poet’s Neuk, which plans to turn it in to a public garden dedicated to Mary Queen of Scots.

But those behind the Isle of Man-based trust were compelled to do so by ministers under the terms of land reform laws, which came into force in 2020.

It is the first time the legislation has been used to force a community buyout of land, and the Scottish government will defend its decision in a case starting at Dundee later.

If the landowner’s appeal is denied, lawyers for the trust say it may have a “ground breaking” implications for land ownership in Scotland.

Poet’s Neuk said the land – at the corner of Greyfriars Garden and St Mary’s Place – was gifted to the Fife town by Queen Mary prior to her abdication in 1567.

The group said in recent years it has been the scene of anti-social behaviour and drug taking and also has an issue with vermin.

Poet’s Neuk was granted planning permission from Fife Council to transform the land – which sits within St Andrews’ conservation area – into a public garden, complete with a statue of Queen Mary.

In 2018 it was awarded the right to buy the land under the Land Reform (Scotland) Act 2016.

A provision added to the legislation in 2020 stated “abandoned, neglected or detrimental” land can be bought by a community organisation via compulsory purchase if it is judged to be in the “public interest” for it to do so.

That was granted to the group in 2023.

The Scottish government said the land transfer was “likely to further the achievement of sustainable development”.

In a decision notice, they said the project would “promote social sustainability by creating a place where members of the local community can meet and interact”.

But lawyers acting for Forthtay, which was previously known as Optimus Fiduciaries Ltd, said several of its previous planning applications for the site were rejected by Fife Council.

The latest application was for a coffee kiosk on the land inside a converted horsebox.

It was unanimously refused after attracting more than 40 objections.

Lawyers also said previous plans to curb anti-social behaviour on the site were turned down by the council.

MML Law, based in Dundee, said the outcome of the case would have “national implications”.

A spokesman said: “The owners are now essentially being accused and found guilty of effectively neglecting the land and thus being required to forfeit ownership against their wishes.

“This is a ground breaking case which could have far reaching consequences for many around Scotland.

“Any property owner in Scotland would be well advised to pay very close attention to the provisions of this act and how this case unfolds.”

The Scottish government said it could not comment on live cases.