A seven-year legal battle to prevent an Oxford restaurant using a riverside pontoon has been lost.

The High Court in London has ruled that Aziz Pandesia - formerly Aqua Vitae - at Folly Bridge can use the pontoon, overruling Oxford City Council and a planning inspector.

The latest decision is the second time the Town Hall has lost a High Court case in a year - and it could cost the council thousands of pounds.

Last June, a failed bid for permission to build 45 affordable homes on the Trap Grounds in North Oxford landed the authority with a £160,000 legal bill.

The latest battle centered around complaints from those living near the restaurant about noise.

However, two planning inspectors disagreed over the same issue.

In his final judgement, delivered on Wednesday, deputy High Court judge George Bartlett said: "I'm satisfied that any harm to local residents could be sufficiently overcome through the imposition of conditions, bearing in mind the extent to which in any event the use of the pontoon would be subject to the uncertainties of the weather."

The city council was ordered to pay costs of £10,000 which, when added to their own costs and officers' time, could push the total nearer £50,000.

The authority applied for leave to appeal to the Court of Appeal, but this was refused.

No-one at the restaurant was available for comment when the Oxford Mail called last night.

City councillor Bob Price said: "The residents of Shirelake Close will be disappointed as they have suffered over many years from late evening noise and light pollution problems.

"However, we have had assurances from Aziz Rahman, who now runs the restaurant, that he will observe the permitted times for the use of the pontoon and will rigorously control any noise problems.

"Mr Aziz is sponsoring the Oxfordshire 2007 Festival of the River and I hope that this will be a successful summer for the restaurant and that good relations will be maintained with the residents."

Trouble started when owner of the site Orde Levinson first started using the pontoon.

In 2002, he sought a judicial review after the council served him with an enforcement notice banning diners from the pontoon.

He was told to remove lighting and signs, which did not have planning permission.

In 2004, residents living close to the restaurant celebrated after city planners rejected an application to allow diners on the pontoon.

But in 2006, the decision was overturned when a Government-appointed planning inspector found in the restaurant's favour.

An Oxford City Council spokesman said: "We took this case to the High Court after the planning inspectorates came to two different outcomes on exactly the same planning permission issue.

"When we grant planning permission we have to act in the public interest and local residents had complained about the noise of the use of the pontoons with sound carrying across the water late into the evening."