A milkshake bar has won a legal battle against Camden Council to overturn restrictions on its opening hours.

Tinseltown had been ordered to cut its hours after a six-year campaign by residents from New End, Hampstead, who claimed the fast food restaurant’s customers wreaked havoc in the village.

Neighbours had complained that punters threatened violence, left a trail of litter, flouted parking restrictions and woke children up in the early hours, with customers being served until 3am on Saturday and Sunday.

But last week the owners of the American-style diner successfully overturned the restrictions imposed by the council. At the hearing at Highbury Corner Magistrates’ Court the town hall solicitors were also told the council must now cough up �4,000 in legal fees.

Hampstead Town councillor Chris Knight said the council had lost on a “technicality” and he would renew the fight to restrict Tinseltown’s opening hours. He said: “It’s a crying shame, so now we go again. As a word of warning to Tinseltown, the old farts of Hampstead are coming again; this is not going to go away.”

Cllr Abdul Hai, cabinet member for community safety, said: “The council restricted the opening hours of Tinsletown milkshake bar. This followed a licencing review to address residents’ concerns of early-hours, noise nuisance at the premises.

“A court overruled this action and awarded costs against the council, due to administrative errors with the case.

“We are very disappointed with the court’s decision and we are reviewing our administrative processes to improve future licencing reviews.”

Tinseltown did not respond to emails from the Ham&High.