Exeter City reached agreement with the majority of creditors in October

The FA has put off deducting 12 league points from Exeter City FC after deciding it did not have jurisdiction to hear the appeal because of what it termed "procedural questions".

The penalty was imposed on Exeter City by the Nationwide Conference after the club struck a deal with creditors to pay back just 10% of its estimated �4m debt.

The conference says clubs which do not pay debts in full, or enter administration, are to be punished as it is unfair to those clubs which live within their means.

Severe blow

Dozens of fans travelled to the FA's headquarters to hand in a 4,000 signature petition ahead of Tuesday's hearing.

Speaking after five hours of talks, Exeter City's solicitor Stephen Allinson said: "The appeal board took the view that it did not have jurisdiction to hear an appeal at this stage because of procedural questions which arose in the manner by which the original decision was taken and the consequent appeal process."

In October, club representatives met creditors and made a corporate voluntary arrangement (CVA), under which those owed money would receive 10p in the pound, to be paid over five years.

A deduction of points would mean Exeter City dropping to mid-table and deal a severe blow to their hopes of a return to the Football League after relegation from Division Three at the end of last season.

Members of the club's governing board, which is now run by the fans, say they should not be punished for debts accrued by previous owners.

Fans gained control of the club early in September, when the Exeter City Supporters' Trust took over the majority shareholding of former club chairman Ivor Doble for an undisclosed fee.

The club will appear before Bristol High Court later this week in a separate case about Conference League rules.