Gyu Seon Park, 40, was granted bail when he appeared in the ACT Magistrates Court on Friday on charges of committing acts endangering life.

Park is accused of pouring petrol on the floor, furniture, and at diners' feet at Kusina restaurant at Weston on September 9.

He allegedly then threatened to set the fuel alight, but was restrained by two witnesses until the police arrived.

Park has been in custody since his arrest.

The court on Friday heard a psychiatric assessment had found Park suffered from schizophrenia, which was in remission, and amphetamine use disorder.

He had allegedly been using ice in the lead up to the incident.

Court documents said Park worked as a tiler for collapsed building company Sublime Constructions, owned by Dee Vong Sisomphou and Minh Phan, between 2010 and 2012.

But Park was allegedly left $60,000 out of pocket after he said Mr Sisomphou refused to pay for work he claimed had been faulty.

Park attempted to recover the money through the courts, but said he dropped the matter as he could not afford the legal expenses.

The pair arranged to meet for lunch and Park allegedly again asked for the money.

Witnesses allege the accused left the restaurant and returned a short time later with a six-litre tin of fuel.

Park then allegedly poured the fuel around the seating area, counter, and the feet of two diners and threatened to set it alight.

The prosecution did not oppose Park's application for bail on Friday, as long as he agreed to certain conditions.

Magistrate Peter Morrison bailed Park on condition he live in Giralang, continue to receive mental health treatment, not contact or approach the complainants, and not enter the suburb of Weston.

The matter will reappear on December 4.