Neil Hamilton has been declared bankrupt

The Harrods boss is still owed most of the legal fees from the trial, in which Mr Hamilton tried to sue him for libel after he said he had paid the former MP for Tatton to ask questions in parliament.

Summing up on Wednesday, Mr Justice Morland said he had come to the conclusion that it would be "unjust and unreasonable" to make any orders for costs in favour of Mr al-Fayed.

The judge said he would give full reasons for his decision at a later date.

Each backer was separately represented by leading and junior counsel and solicitors.

The judge said separate representation was "eminently reasonable and necessary" because of their different interests and circumstances.

Bankrupt

The eight were named in court as: The Duke of Devonshire, Richard Clay, Christopher Sharples, David Wills, Sir Robert McAlpine Ltd, the Earl of Portsmouth, Lord Hanson, and Taki Theodoracopulus.

Mr al-Fayed's claim against seven other individuals has been settled.

James Price QC, for Mr al-Fayed, had told the judge that Mr al-Fayed had incurred costs of nearly �1.5m plus interest defending the action.

He was still owed just over �1.2m plus �144,000 interest.

Mr Price had also told the judge that a fighting fund, and Lord Portsmouth - who effectively "underwrote" it - contributed �466,321 to Mr Hamilton's costs.

Mr Hamilton did not pay anything towards the costs, although he pledged his house when it appeared likely that there would be a shortfall.

It was clear that, but for the fund, the libel action would never have been brought or continued, said Mr Price.

In May this year, Mr Hamilton was declared bankrupt in the aftermath of the 1999 trial.

He is reported to have debts in the region of �3 million.

He had claimed that the bankruptcy petition was issued by Mr al-Fayed as "an act of revenge knowing he would get nothing out of it".