The action has been brought by Bahamas based Barford Holding Ltd in respect of lands it owns at Main Street and Coast Road Baldoyle in Dublin 13.
At the High Court on Thursday counsel for Barford Declan McGrath SC told the court that in 2015 the company obtained permission from An Bord Pleanala to construct the retirement facility and hotel.
Counsel said the proposed development is "substantial." Permission was given to build the retirement facility which will contain 150 en suite bedrooms, two libraries, quiet rooms, libraries, roof terraces and rooms for patient care.
The proposed hotel has 134 rooms, 16 suites, a swimming pool, gym, spa, business centre, restaurant and conference centre. Planning permission was due to expire in July, counsel said.
In its judicial review proceedings against the council Barford seeks various orders including on quashing the local authority's refusal to extend planning permission.
It also seeks an order remitting the application back for a fresh determination.
Permission to bring the challenge was granted on an ex-parte basis by Mr Justice Charles Meenan. The case will come back before the court in November.
