The man accused of kidnapping schoolgirl Shannon Matthews appeared in court yesterday just hours after he was attacked in prison.

Michael Donovan, 40, was assaulted on Thursday at Leeds Prison, where he is being held on remand.

Mr Donovan, who is not thought to have been seriously hurt, appeared alongside Shannon's mother, Karen Matthews.

They are both charged with kidnapping and falsely imprisoning Shannon, who went missing from her home in Dewsbury, West Yorkshire, in February, when she was nine years old.

Giving evidence at Leeds Crown Court, Mr Donovan's niece Caroline Meehan described her uncle as "a bit creepy".

Ms Meehan was asked by Mrs Frances Oldham, QC, for Ms Matthews, if she agreed with the description that her uncle was "a loner, a bit creepy and a fantasist?"

"Yes," she replied.

A neighbour of Mr Donovan told the court she heard a toddler's footsteps and laughter in the defendant's flat during the time Shannon was missing.

June Batley said she heard the noises on about three separate occasions.

Ms Batley said: "We heard tiny footsteps which we thought was a toddler."

She told the jury that in the months before February this year she believed Mr Donovan had a new girlfriend.

She said she assumed the "toddler" she heard was his new partner's child.

Asked if she ever saw a child, she said: "No. Never. Just heard laughter of a child. It only seemed like a young, young child."

Ms Batley said she knew Mr Donovan quite well as he would come to her flat, which was below his, for coffee and a chat. She said he could be friendly at times but could appear "ignorant" on other occasions.

The jury has been told Shannon was drugged and restrained with a strap tied to a roof beam after her mother hatched an alleged plan to make £50,000 in reward money from her faked kidnap.

The court heard Shannon was kept locked in a flat for 24 days by Mr Donovan, who police believe used an elasticated strap with a noose on the end to tether her when he went out.

Prosecutors claim Mr Donovan drugged Shannon with Temazepam and travel sickness tablets.

All the time Shannon's mother kept up a "wicked and dishonest lie" - knowing where her daughter was as police conducted a massive search operation which cost almost £3.2m, the court has been told.

The case continues.