As I understand it planning permission protection for pubs only came in on 23rd May 2017, In 2016 change of use from A4 (drinking establishments) to A3 (restaurant and cafe) was permitted development if notified in advance.
I guess that by waiting until 2017 to make a fuss the council forced the new rules to apply to a retrospective application (retrospectively asking permission for something that didn’t need permission at the time). That seems very fishy to me.
I can’t remember where I read it, but I think the Cafe owner applied for a Certificate of Lawfullness, ie, confirmation that it was permitted development, and was refused. On appeal, the Inspector granted permission, subject to the controversial condition.
The Injunction has been referred to as a ‘draft’ injunction, but I think it may actually be an ‘interim’ injunction, ie, it has to be complied with until the hearing. The interesting point is that if the court doesn’t confirm the injunction, the council would be liable for damages (although whether there has actually been a loss of business may be hard to judge)