A Castle Donington micro-pub could be brought back into use, licensing documents reveal.

The Flag, formerly the Chequered Flag, opened in the village in 2014.

However, the Borough Street venue's licence lapsed last year after North West Leicestershire District Council (NWLDC) discovered the business owner Robert Sandham had gone bankrupt.

A subsequent bid by his partner Christine Westbrook, to gain a new licence was then rejected by the local authority over fears the venue "would not comply with rules".

This, the council said, was because the pub had a history of engaging in unlicensed activities, including the use of outdoor street furniture without consent, of non-compliance with failing to provide CCTV footage when requested and its owners had previously been taken to court over failures to remove rubbish from the site.

Ms Westbrook claimed the accusations were "exaggerated" and "misleading" in a bid to tarnish their names. Now, a new business has put in its own bid to bring the micro-pub back to life.

The new venue would operate under a new, and as of yet undecided, name, applicants Stephen Doig and Andrew Green have said. Comments from the former micro-pub's neighbours suggest it could be turned into a wine bar.

However, a number of concerns about the proposed new use have been raised by neighbours. Ben Lee and Jayne Orme said they have lived over the venue since 2007 are worried.

Mr Lee said they were in the "unique position of having previously endured nearly a decade of continual nuisance and disturbance" from the pub. He added the building they and The Flag share was previously one building, since divided into four, with the micro-pub located directly below their home.

He said: "Due to the age and structure of the building, sound travels easily through walls, ceilings and floor voids. It is no exaggeration to describe [the pub] as being in the other room, rather than next door […]

"The former micropub has gone, the property has been stripped out and returned to an empty shell of a retail unit, I was really hoping that the ridiculous notion of theses premises being a suitable location for a licensed premises was dead in the water. It felt like being punched in the stomach when, after eight months of peace and quiet, I had someone knocking on my door to say they were considering turning the empty retail unit back into another boozer."

Mr Lee called on NWLDC to reject the licensing bid. However, he added if it is approved, he wanted conditions added to ban drinking outside of the venue and for neither live nor recorded music to be allowed at any time.

Ms Orme said their property had been subject to "constant background hubbub" in their bedroom and living area over the years. She claimed the noise had made it difficult to sleep.

She said: "The noise intruding into our living area was also a constant nuisance. All this may seem quite innocuous but living next door to this disturbance, day in and day out, affects our quality of life and absolutely plays on our nerves. Whilst I appreciate this relates to a previous situation, I see no reason why the noise levels, from the proposed wine bar, won't approximate those of our past experience."

Ms Orme added her own suggestions of conditions she believes should be attached to any approval, including the new owners not being able to request permitted opening hours are changed in the future and adequate sound proofing being installed in the venue.

Applicants Mr Doig and Mr Green are seeking permission from NWLDC to serve customers seven days a week. They want to open from 12pm until 9.30pm Monday through to Thursday, until 10.30pm on Fridays and Saturdays and until 6pm on Sundays. They have also asked for seasonal variations that would like them stay open later on a Sunday before a bank holiday Monday and on New Year's Eve.

NWLDC's licensing committee will meet next week to debate the application.