The stoush, about renewal of the Grail's lease, comes against a background of major changes to the line-up of premier dining and eating establishments in Manuka and Kingston.

Holy Grail owner Ian Meldrum is pursuing legal action against building owners and landlords Socrates Kochinos and Pawl Cubbins. He says he was offered a 10-year lease renewal which was then rescinded before his current lease expired on August 31. Mr Meldrum said the bar is currently operating under a month-to-month lease.

It is understood Mr Kochinos and Mr Cubbin intend to redevelop the site, which also houses the First Floor restaurant. A development approval notice was delivered to the Holy Grail site on Thursday.

''After 1212 years, that it might come to an end in a legal battle is very sad,'' Mr Meldrum said.

''I had accepted a lease as I had insisted on having one, as I had plans to refurbish the place. Just before the lease expired I was told I would not be renewing, despite having already been offered another 10 years.''

Industry sources have said Mr Kochinos, who owns the Belluci's restaurants, SubUrban in Dickson and Cream in Civic, has plans for a two-level bar and dining establishment.

Mr Kochinos declined to comment when contacted by the Sunday Canberra Times.

In further changes to the inner south's entertainment scene, Manuka nightspot Minque, which recently closed after more than two decades, will next month become a restaurant, tapas and wine bar as an extension of the Spanish restaurant Legends, located upstairs from the Franklin Street site.

The consortium behind Minque was understood to be negotiating to open a new establishment Banque in Palmerston Lane, the site of the fine dining restaurant Atlantic, until the then building was demolished to make way for offices.

Manuka eatery Pangaea has changed hands after going into administration and has now reopened as the Blackstone Bar and Restaurant. Across the road, short-lived Mediterranean seafood restaurant Whitebait has also been sold and is undergoing renovations by the new owners.

New additions to Kingston include upmarket late night bar and eatery the Supper Club, while a new nightspot yet to be named on Kennedy Street is set to open for business early next month. The venue will be operated by Dimitri Eliopoulos, former owner of the adjacent B Bar.