The Mail on Sunday’s parent company has had to pay out substantial libel damages to the Muslim Council of Britain’s Inayat Bunglawala over terrorism related allegations.

Associated Newspapers accepted that Mr Bunglawala did not support al-Qaida after making the claim last year.

In a story published in March, the newspaper reported that a man who had broken into Bunglawala’s house was attacked with a knife.

It also alleged that Bunglawala had a controversial history as a spokesman for the Muslim Council of Britain and previously supported the extremist cleric Abu Qatada and al-Qaida.

But Mr Bunglawala’s solicitors pointed out that he was forced to act in self-defence to protect himself and his family against the intruder. The Crown Prosecution Service said it would not be taking action against Bunglawala not long after the incident.

His solicitor told the court that his client did not support or condone the views or objectives of Abu Qatada or al-Qaida and, “had gone on the record many times to criticise and condemn al-Qaida”.

The Mail on Sunday accepted the allegations were false, apologised and agreed to pay damages and costs.