An Oxford restaurant has lost the latest round in a mammoth legal battle over the use of its riverside pontoon.

Oxford city councillors have rejected an application for the Aziz Pandesia restaurant at Folly Bridge to extend its opening hours until 11pm after neighbours' objections.

However, restaurateur Aziz Rahman has vowed to continue the fight with the council — which has so far estimated to have spent £200,000 on a decade-long legal wrangle to stop the pontoon being used in the evening.

But, despite, the latest setback it looks like a compromise deal could be struck.

Objectors told councillors at the central, south and west area committee meeting on Tuesday that allowing the pontoon to open beyond its current 9.30pm time limit could blight their lives.

Elizabeth Gardener, of Folly Bridge, said: "We feel this application is unreasonable. There's a potential noise problem from the pontoon.

"In my apartment I can hear a conversation between two people working in the restaurant. I can even hear plates being scraped."

"There's nothing to stop the noise of the restaurant drifting into residents' windows. Up to 60 people could sit on that pontoon eating and drinking until after 11pm."

The council said it had received two complaints from residents about noise from the pontoon since 2006. Neither was substantiated.

Earlier that year Mr Rahman won a seven year fight to allow outside dining when the High Court over-ruled the council's decision to prevent the pontoon from opening.

In the meeting Nikolas Lyzba, a planning consultant hired by Mr Rahman, said the pontoon had already run beyond its legal hours of operation without causing any noise nuisance.

Councillor Colin Cook sought to broker a deal which could see the restaurant open until 10pm on a trial basis and grant a licence to Mr Rahman to allay fears the business could be sold and turned into a pub or nightclub.

However, planning chiefs said this was not within the committee's power and councillors voted to refuse the license.

Afterwards Mr Rahman said: "I'm disappointed. This is unreasonable when you think there have only been two complaints over the past three years.

"I've stood on the other side of the river and there's more noise coming from residents' windows than people eating on the pontoon.

"My customers are not shouting or yelling."