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For the class of non square general neutral time delay systems the problem of triangular decoupling is extensively solved using a dynamic realizable controller with dynamic measurement output feedback and dynamic precompensator. The necessary and sufficient condition for the solvability of the problem is established and a general class of realizable controller matrices solving the problem is derived. The condition is proven to be the right invertibility of the open loop system. The above results are successfully applied to a small scale activated sludge process (ASP) where a two stage dynamic controller is designed. The inner loop controller is a triangular decoupling controller while the outer loop controller, is used to compensate model uncertainties and nonlinearities of the plant. The performance of the closed loop system is illustrated through simulation.