GYOR, Hungary, February 6 (Reuters) - A Hungarian court ordered a retrial on Monday over the spill of toxic red sludge in 2010 that killed 10 people in one of the country's worst environmental disasters. Prosecutors had appealed against a 2016 ruling that had acquitted 15 people in the case. Monday's verdict by a court in the city of Gyor overturned that ruling and ordered a retrial. In the 2010 spill, toxic red mud flowing from an alumina reservoir destroyed hundreds of homes in three towns, covered the countryside and seeped into rivers as far downstream as the Danube. It took years to clean up. "The court ... annuls the Veszprem court ruling dated January 28, 2016," judge Csilla Zolyomi told a packed courtroom in Gyor as she started to read out the documents of the case. MAL Corp, the aluminium smelting company that owned the faulty alumina reservoir, was subsequently taken over by the government, which declared it responsible for the incident and began to close it down. In a first instance ruling, a court in the western town of Veszprem said that executives and top employees of MAL had not been criminally negligent, nor had they committed other crimes they were charged with during the 40-month legal procedure. The prosecutors had asked for that ruling to be annulled, saying the Veszprem court ruling had drawn false conclusions in the case, according to a statement on the Gyor court's website.