Azam Ahmed ordered the huge dairy haul from specialist food firm Lactalis McLellan using a false name and company.

The firm was sent a fake cheque to pay for the goods, and Ahmed then sold the cheese to another food firm in Wales.

By the time the police were alerted, the cheese had already been grated and could not be returned to Lactalis McLellan for resale.

At Glasgow Sheriff Court yesterday, Ahmed, 26, of Arlington Street, Glasgow, admitted defrauding the Glasgow-based firm of £42,605.20 worth of cheddar cheese and gorgonzola between 27 November and 4 December, 2006.

Prosecutor Mark Allan told the court a call was made to Lactalis McLellan regarding the huge order on 27 November.

Mr Allan said: "The individual who contacted the company purported to be Michael Collins, group buyer of a company named the Buying Group Ltd. He placed an order for 24 of the 1,000kg pallets of cheese."

The company arranged for its distribution manager to visit the premises where the cheese was to be delivered to check it was suitable.

The manager visited Ahmed at a premises he owns named Buckingham Trading Ltd and was told by the businessman to leave the cheese on the pavement outside.

Ahmed was told this was unsuitable and alternative arrangements were made to deliver the cheese to Supreme Food Processors, Kirkintilloch, for storage on 30 November.

Mr Allan added: "The accused then contacted the director of GRH Food Company based in north Wales. The accused is known to the director of that company, who was asked if he would be interested in purchasing a large consignment of cheese.

"The pallets of cheese were delivered to GRH food company on 1 December."

Lactalis McLellan contacted the police when the cheque they received for the goods was found to be fake. A trail of faxes and telephone calls led officers to Ahmed, who was later arrested.

Defence advocate Allan MacLeod told the court that, by the time police traced the cheese in Wales, it had already been grated.

He said: "The cheese was grated and had been devalued. However, GRH agreed to pay Lactalis McLellan the amount it had agreed to pay Mr Ahmed, which resulted in a £20,000 loss to the company.

"If there was a legitimate loss to the company and it was not covered by insurance, then Mr Ahmed may be able to make a payment towards that sum."

Sheriff Andrew Normand deferred sentence until next month for reports, and Ahmed was released on bail.