Gillingham FC chairman Paul Scally is heading for a High Court showdown with former Watford FC directors the Russo brothers.

Valley Grown Salads, a company owned by Giacomo (Jimmy) and Vincenzo (Vince) Russo, is owed £250,000 by Mr Scally who has failed to repay a loan, it is alleged.

Now the two brothers have kicked off a legal battle with Mr Scally by issuing a writ demanding repayment of £250,000 as well as interest, taking the total claimed to £283,520.55.

Mr Scally, 55, is a controversial figure who made his fortune from selling a photocopier business. He bought the Gills for £1 in 1995 and took the club out of administration to success with three Wembley play off finals.

He has also headed the redevelopment of the club’s stadium and owns Priestfield Developments, which he formed in 2007 to buy the club’s Priestfield Stadium for £9.8 million as part of restructuring the club’s debts.

Valley Grown Salads is a family business supplying locally grown and imported salad to three major retailers. The business has lent millions to Watford Football Club secured against the Vicarage Road ground.

According to the writ, Jimmy Russo, 53, agreed to make a short term loan of £250,000 to Scally on December 5 2007 after he asked for financial assistance.

The money was transferred directly into his bank account and the two sides understood that if the loan was not repaid in about three months, a commercial rate of interest would become payable, it is claimed.

Mr Scally, of Long Mill Lane, Sevenoaks, failed to enter into a formal written agreement for the loan and has failed to repay a penny of the money, despite numerous oral and written requests for payment, the writ alleges.

Now Valley Grown Salads is seeking repayment of £250,000, or damages for breach of agreement, as well as interest at six per cent, which is the same rate as charged on a separate commercial loan previously made to Scally, the writ says.

The writ was issued by solicitor Richard Stephens of Vanderpump and Sykes.