THE verdict in the trial of a councillor accused of telling voters her election rival is a paedophile has been delayed.

The case against Miranda Grell, 29, has been adjourned until Friday, September 21, when the judge will hear closing arguments and decide whether she smeared Barry Smith during last year's local election campaign.

Cllr Grell unexpectently took one of three seats in Leyton ward, beating Mr Smith, a high-profile cabinet member, by 28 votes.

Two of the four charges against her under the Representation of the People Act 1983 were dramatically dropped on Thursday.

The prosecution had previously applied to have one of the charges changed to refer to the evidence of Caroline Dargan, rather than Kevin Sorkin, who both testified on Tuesday.

District Judge John Woollard said it was too late to make the change. He also said he could not be satisfied that an incident described by Mavroudhis Kounis, which was the basis of another charge, happened within 12 months of a formal accusation being made, as required by law.

Ms Grell took the stand on Thursday and admitted she told Mr Sorkin that Mr Smith was gay and had a 19-year-old Thai boyfriend.

She described the comment as "indiscreet and unwise", but vehemently denied she told three other residents that Mr Smith is a paedophile.

Mr Smith has been in a relationship for 13 years with his male partner, who is a 38-year-old Malaysian national of Chinese origin.

During prosecution questioning, Cllr Grell accused Mr Smith and fellow Liberal Democrat Cllr Bob Sullivan of conspiring against her in revenge for the loss of the previously safe Lib Dem seat.

She said she believed the allegations made by Ms Dargan were politically motivated and Mr Kounis, the only police witness, had a grudge against the Labour Party over a failed planning application.

She added that two of the witnesses, Mr Sorkin and his ex-partner Naomi Robinson, are vulnerable and being "exploited".

Cllr Grell also said fellow Labour candidate Nicholas Russell, who accused her of homophobic behaviour during testimony on Tuesday, resented her for lodging an official internal party complaint about his performance during the election campaign.

Gareth Branston, prosecuting, responded to the claims by saying: "The fact is Ms Grell, you are a fantasist. These complaints about the Lib Dems trying to get you are a desperate attempt by you to explain why five different people, from different backgrounds, have come to court and gave evidence."

Cllr Grell said Mr Smith conftonted her on the eve of the count and accused her of telling voters he is gay.On election night, Cllr Grell said Mr Smith made it clear he believed there had been a concerted Labour campaign to use his sexuality against him. However, following his defeat he was said to have not initally blamed Cllr Grell for his defeat, but accused his own party of "knifing him in the back".Ms Grell also said Mr Smith, former cabinet member for community safety, had considered defecting to Labour.

Leyton and Wanstead MP Harry Cohen and London Assembly member Jennette Arnold acted as character witnesses for the defence. Both praised Ms Grell, saying she was a gifted, enthusiastic campaigner who was driven by a strong sense of social justice.

Cllr Grell was moved to tears as Ms Arnold said she was motivated to succeed by a strong desire to justify the support of her family and friends.

When asked whether she thought Cllr Grell was capable of smearing a political rival in the manner alleged, Ms Arnold replied: "She would know that is totally unacceptable, she would never do that in my view."