Randwick residents prepared a petition and wrote 37 separate objections opposing plans by the Coach and Horses Hotel to play amplified music in an outdoor area seven nights a week.

But when they turned up to voice their complaints to a full council meeting, the council refused to hear them with half of the councillors claiming conflicts arising from political donations made by the pub.

Seven of 14 councillors present claimed pecuniary and non-pecuniary interests prevented them deliberating on the application and, with no quorum to consider the issue, the frustrated residents were turned away.

That was back in July but the council has remained paralysed on this issue ever since. Yesterday, the hotel took them to the Land and Environment Court appealing against council's ''deemed refusal'' for failing to make a determination on their application.

With a majority of councillors still insisting they cannot vote on the matter, the council could not appear in the proceedings. It was left to several residents, including chairman of the local precinct committee, Paul Chilcott, to turn up and put their views.

In an attempt to break the impasse, Mr Chilcott had sought council funding so that residents could get legal representation to appear. But his request failed on the same pecuniary interest grounds that has prevented the council deliberating.

The court will hear the matter on November 1, but the council will not appear and only the views of the hotel will be heard, a situation Mr Chilcott said was grossly unfair to residents who would have to live with any noise.

Three Liberal councillors including Scott Nash, who was elected mayor this week, Robert Belleli and Ted Seng have declared ''significant non-pecuniary interests'' because another Liberal councillor and the Coogee MP, Bruce Notley-Smith, accepted a $4000 donation from the hotel in the lead up to the March state election.

Mr Chilcott said while Mr Notley-Smith had a conflict, he did not believe the conflict claimed by other Liberal councillors was significant.

Cr Nash challenged this view and said ''it would be unlawful and improper for Randwick Liberal councillors to vote''.

Another Liberal councillor Kiel Smith has declared a pecuniary interest because he works for a company that has a business relationship with the Coach and Horses Hotel, while No Parking Meters councillor Charles Matthews took a donation from the hotel, independent councillor Anthony Andrews and independent John Procopiadis also declared an interest.

Political donations stop councillors hearing hotel music complaints