A group of elite soldiers complained Ben Roberts-Smith wasn't a "fit and proper" person to receive a Victoria Cross and alleged he was a bully at a meeting with their superior, a Sydney court has heard.
The war veteran is suing The Sydney Morning Herald, The Age and The Canberra Times newspapers over a series of 2018 stories that contained what he says were false allegations of unlawful killings, bullying and domestic violence.
Mr Roberts-Smith's lawyers today called a witness codenamed Person 100, a serving major within the Australian army, to the Federal Court.
Person 100 recalled in 2013, when he was a regimental sergeant major, four sergeants attended his office for a meeting.
He said a SAS soldier codenamed Person 7 stated "as a collective" the group was there to raise allegations about Mr Roberts-Smith.
Person 100 recalled Person 7 informing him of a belief Mr Roberts-Smith wasn't a "fit and proper person" to be awarded the Victoria Cross, that he had bullied himself and others, and that he had claimed the actions of other soldiers on the battlefield as his own.
Regarding alleged bullying, the witness said Person 7 raised an incident between a colleague, Person 1, in which that soldier had been assaulted in 2006 as a result of a mishap with a machine gun and subsequent "belittling" by Mr Roberts-Smith for six years.
Person 100 said the group stated they wanted Mr Roberts-Smith's Victoria Cross rescinded.
He told the judge he told them it was unlikely the unit could do anything about rescinding the award, but the bullying allegations would be "followed up".
He said the meeting involved "no hint" of any breach of the rules of engagement.
The court heard Person 100 also had a separate meeting with four then-corporals, which involved similar concerns about the Victoria Cross and alleged bullying.
Person 100 said nobody raised any allegation Mr Roberts-Smith had broken the rules of engagement at this meeting.
Under cross-examination by publisher Nine Entertainment's barrister, Nicholas Owens SC, Person 100 defended his handling of the bullying complaint, saying he needed witness statements from Person 1 before he could investigate.
Person 100 also denied he was told of allegations of war crimes during the meeting with the sergeants.
Mr Owens suggested Person 100 failed to act on the allegations because he knew they involved Mr Roberts-Smith and he didn't want a war crimes investigation in the SAS, which would "invite scandal".
Person 100 rejected each proposition.
The witness also denied being told about allegations of war crimes in the corporals' meeting.
Mr Owens put to him that he was concerned "friends and allies" of the veteran would be angry at him for having instigated an investigation and he wanted the allegations "swept under the rug".
"I could not report allegations I was not aware of," Person 100 replied.
The trial, before Justice Anthony Besanko, continues.