Labour MP Rosianne Cutajar has said she did not receive any money from a man who claims that she owes him €44,500 and warned that she is holding him responsible for damaging her political career.
She also denied that she has already reimbursed €2,000, as was claimed.
Cutajar was replying to a judicial letter filed last week by the would-be seller of an Mdina property, Joseph Camilleri, the ultimate beneficial owner of Green Eyes Limited.
Camilleri is claiming that he had forked out the money in cash days after a promise of sale was signed on May 14, 2019, as fees, on condition that neither Cutajar nor her associate Carmel Farrugia were to dispose of it until the sale was finalised.
Times of Malta had revealed that Cutajar and Farrugia had acted as brokers on the projected €3.1 million sale in favour of Yorgen Fenech, currently accused of complicity in the assassination of Daphne Caruana Galizia.
But when the promise of sale expired in November 2019 and the final deed was called off, neither Cutajar nor Farrugia refunded the monies.
The under-fire MP was forced to temporarily resign from her position as parliamentary secretary for equality and reforms last month as an investigation is held by Commissioner for Standards in Public Life, George Hyzler.
The original fee stood at €46,500 but was subsequently reduced and each of the brokers had refunded €2,000, Camilleri had claimed.
In her reply to the judicial letter, which she filed before the First Hall of the Civil Court, Cutajar denied owing Camilleri any money and also that she had given him €2,000.
"There is no judicial relationship between me and Camilleri and this never existed," she said.
She added: "I hold you solely responsible for the damage you have caused to my political career and my reputation as a result of the allegations you are making."
She warned Camilleri to desist from pursuing his "unfounded, malicious and baseless" claims against her, warning him of further legal action if he persisted.
Lawyers Edward Gatt and Mark Vassallo signed the reply.
The Standards Commissioner is also looking into reports that the income was not declared in the declaration of assets presented in parliament by MPs.