Arnott is a director and shareholder of that company as well as of the two other holding companies which ultimately own Cook Brothers International.
Each Velvet Burger outlet is run as an individual company and neither Velvet Burger in Riccarton, Christchurch, nor any others around the country, are part of the proceedings.
Seeking court redress is The Terrace Christchurch, whose sole director and shareholder is Antony Gough, of Christchurch, who developed and owns the The Terrace in Christchurch's Avon River hospitality precinct.
Gough did not return calls for an interview.
Arnott said yesterday a lease had been signed with Gough in about 2015.
However, he understood there was a "sunset clause" in the lease, which meant he could terminate the lease if the development was not ready for occupation.
"Yes, there's a dispute, but we've moved on [to the Riccarton outlet].
"My understanding is the lease is terminated, but he's trying to get rent out of us," Arnott said.
He said his company, Velvet Burger Terrace, incorporated in March 2016, "had never traded".
There are six Velvet Burger companies, Velvet Burger Octagon, Velvet Burger Auckland, Velvet Burger Federal St, Velvet Burger Christchurch, Velvet Burger International and Velvet Burger Terrace, all of which are limited liability companies.
Stuff reported in December 2017 that most of the 17 hospitality operators moving into the riverfront The Terrace development were fitting out their premises at that time.
However, earlier delays meant the tenants would miss the Christmas trading period and were at that time planning to be open by February or March 2018.
When Arnott was asked if the dispute could be settled before the appointed court date, he said he was "confident" no money was owed to Gough.
Gough began planning for The Terrace after the February 2011 earthquake to replace the row of restaurants and bars called The Strip on his Oxford Tce land.
Construction began in 2013.
