The Powder Room was back before the Alcohol and Regulatory Licensing Authority in Queenstown on Monday, with police seeking the cancellation of a duty manager's certificate.
Judge John Hole reserved his decision regarding Charlotte McCubbine's certificate over three alleged breaches of the Sale and Supply of Alcohol Act.
During a covert police operation on June 21, dubbed Operation Overload, intoxicated patrons were observed on site, staff were seen consuming shots and other alcohol, and patrons were purchasing several shots at once.
Visits by police on April 6 and August 2 also found insufficient food was available.
Ms McCubbine had also allegedly worked illegally in New Zealand for nearly a month from April after her work visa expired, but she said she had not worked for almost a month from April until May 18 after filing her application a day late.
Her visa had been sponsored by Barra Pista Ltd, but the bar was now in the process of being sold to Tairoa Capital Ltd and paperwork had been filled out to transfer the sponsorship with Immigration New Zealand, she said.
Regarding the covert operation, Ms McCubbine said two males were deemed by police to be showing signs of intoxication on site, while another intoxicated male was found outside the premises, in an area removed from The Powder Room's licence.
He claimed to have consumed ''five Jager bombs in 10 minutes'' inside the bar, however, Ms McCubbine said security had denied him entry and staff had no recollection of him being inside.
She was notified of the incidents in August, but by then was unable to check CCTV footage.
Sgt Stevens said patrons were observed being asked to leave by security due to their intoxication, however, ''they were allowed to remain for 15 minutes to consume the rest of their drinks''.
The Powder Room changed its policy after winter festival, with staff no longer permitted to consume shots, but they could have one drink an hour.
The Powder Room was last before the authority in June. It was issued a three-month temporary authority after incidents involving alleged drug snorting, a drunk duty manager and a fight that had involved a naked man.
