LIBERAL Democrat bosses are expected to decide within days if the party will pay the legal costs for their sole Scottish MP to defend the court case over his part in the “Frenchgate” memo affair during the general election campaign.

Alistair Carmichael has admitted leaking and then lying about the memo, which was aimed at damaging First Minister Nicola Sturgeon by wrongly suggesting that she had told the French ambassador she wanted David Cameron to remain as Prime Minister.

A petition under the Representation of the People Act 1983 bidding to overturn the result in Carmichael’s Orkney and Shetland seat was published on Friday. If he wants to challenge it, he must state his intention to do so by tomorrow at the latest.

The pressure group the People Vs Carmichael has turned to crowdfunding to raise money for the legal costs of bringing the case. Last night the total raised stood at more than £57,200 – 95 per cent of its target of £60,000.

Carmichael has engaged London lawyer Piers Coleman to handle the case, the first of its type in Scotland for more than 50 years.

Coleman – a partner in K&L Gates real estate group – previously acted for Lib Dem candidate Elwyn Watkins, which resulted in a by-election being held in 2010 in Oldham East and Saddleworth. The poll result had been declared void after an election court ruled that Labour’s Phil Woolas knowingly made false statements attacking Watkins’ personal character.

Speaking from Carmichael’s office in Westminster, his parliamentary assistant Tom Panton refused to say who would pay the MP’s legal bill.

“I don’t think that’s any of your business,” he said.

A spokesman at the Lib Dems’ London press office said on Friday no decision had been made: “We would expect a decision in the next few days and then it will be made public. But we have no further comment at the moment.”

Three voters from Stromness and one from Sandwick, all Orkney, brought the petition under section 106 (1) of the Act, which states: “A person who, or any director of any body or association corporate which - (a) before or during an election, (b) for the purpose of affecting the return of any candidate at the election, makes or publishes any false statement of fact in relation to the candidate’s personal character or conduct shall be guilty of an illegal practice, unless he can show that he had reasonable grounds for believing, and did believe, that statement to be true.”

They claimed Carmichael’s statement about when he first became aware of the leak of the memo was covered by that section. The MP had accepted responsibility and had foregone his severance payment of more than £17,000 after leaving the office of Scottish Secretary.

Tim Morrison, one of the petitioners, said: “We still don’t know what Mr Carmichael will do. He will either have to defend the petition, or go.”