An injunction sought by Faulu Kenya, a Kenyan micro-finance provider, to shut down Safaricom’s M-Shwari mobile banking service – pending the outcome of a court case – has been dismissed by a judge according to local press reports.

As part of its push to broaden the range of M-Pesa services, Safaricom launched a banking service last November in partnership with the Commercial Bank of Africa (CBA). Dubbed M-Shwari, which runs on the M-Pesa platform, the service offers loans and interest on deposit accounts.

The micro-finance outfit was quick to go to court, however, claiming copyright infringement and breach of agreement.

Faulu Kenya claims to have met earlier with Safaricom, proposing a similar idea and even offering a partnership with the mobile operator.

The firm’s concept is a cash advance service where clients apply for and receive loans, as well as make payments via M-Pesa. Faulu Kenya claims to have signed a non-disclosure agreement with Safaricom.

Although the judge threw out the injunction demand to close down M-Shwari (reportedly deciding that copyright ownership had not been proved) the micro-finance firm says it’s still pursuing its main lawsuit against Safaricom and CBA.