A Government court case against a beneficiary who took out loans has been labelled a frivolous waste of time.

For eight years, the Ministry of Social Development tired to recover more than $100,000 from a beneficiary who borrowed money from her mother, a finance company and a bank, to help stay afloat.

Yesterday, the High Court ruled the loans didn't count as income as they needed to repaid.

Lawyer Catriona Maclennan told Mike Hosking the case should never have been launched in the first place.

"The High Court 21 years ago said loans weren't income, so MSD already knew that."

LISTEN TO CATRIONA MACLENNAN TALK WITH MIKE HOSKING ABOVE