Ousted refuse collection company Sita is suing Brighton and Hove City Council for more than £2 million.

Sita has lodged a writ in the High Court claiming it is owed £2,049,264 plus £321,640 interest.

The firm is also claiming £393 interest extra per day until either the council pays up or the High Court makes a judgement, which could be months away.

The writ is the latest blow in the bitter battle between the council and its former bins contractor.

A spokesman for Sita UK said: "The council owes Sita UK a significant sum of money for services provided."

The city council has vowed to contest the legal action.

A spokeswoman for the city council said: "We are still evaluating the real cost of Sita's failure to deliver on the contract."

The problems between Sita and the council began in the summer of 2000, less than a year after the council hired the company in November 1999.

Plastic sacks of rotting refuse filled the streets of Brighton and Hove after Sita altered collection days in an effort to increase productivity.

The system fell into chaos and rubbish piled up during the summer.

At the peak of the crisis, proposals were made to move skips on to the streets to hold rubbish.

Relations between workers and Sita management deteriorated, culminating in a four-day occupation of the Hollingdean depot by binmen in support of suspended colleagues in June last year.

A week later Sita agreed to give up its £6.9 million contract with the council and pay back £3 million.

The council agreed to pay the firm an undisclosed sum to stay on for up to four months while another contractor was found.

It is from this period the writ says the unpaid debt has allegedly amounted.

The writ lodged by solicitors acting for Sita is also making a claim for costs, which could tip the final bill to more than £3 million.

The workforce celebrated when Sita left the city. Workers punched the air in delight and union officials praised council leader Ken Bodfish and environment Cabinet councillor Chris Morley for doing a marvellous job.

But, as time passed, no alternative contractor could be found. The council took the bin collection service in-house from October last year.

Gary Smith, of the GMB, who was one of the key negotiators during the crisis, said: "This bad smell just won't go away. It should remind us of some of the very real problems associated with the privatisation of services.

"Given the chaos the company caused in the city, it is Sita who should be stumping up a few more quid."