The first thing is that it is clear that one should always use the Independent Appeals Process.(Sorry for having to repeat this ad nauseam but a very small number of people still don't get this and have lost out as a result.)
There is nothing to lose. If you have received a refund of €40,000, you have automatically received compensation of €4,000.
If you have a good case for getting €50,000 compensation, then there is a real chance that the Independent Appeals Panel will give you €50,000 or something close to it.
If you have no case at all, you are very unlikely to get an increased award, but you might, so there is nothing to lose.
You can still go to the FSO or the Courts.
If you have no case, there is no cost or risk in going to the FSO.
If you have no case, you can certainly try the Courts. ptsb may cave in beforehand. But if you have no case at all, then they probably won't and you might get stuck with costs.
I simply can't conceive of any situation where going to the Courts directly is the right thing to do. Possibly if the solicitor agrees to pay any costs awarded against you, but I doubt if they would do that.
I am surprised that the judge wouldn't pay any attention to it. But I presume that a Judge wouldn't hold exhausting the Independent Appeals Panel against the complainant.
Brendan