Punch issued legal proceedings Mountford in March and the case was set to be heard tommorrow (May 3).
Mountford has been involved in a high-profile spat with Punch over his rent-review terms as the pubco wanted to increase his rent from £14,211.84 per annum to £24,000.
Mountford issued a section 26 against Punch on 16 November 2011 asking the company to consider a new lease and rent from June 2012. This notice gives business tenants security of tenure and the right to renew the tenancy when it comes to an end. However, the section 26 means that either side needs to issue court proceedings to resolve the matter.
In a statement Mountford said: “We have come to an agreement and consequently there is no longer a need for the court hearing.”
A spokeswoman for Punch said: “Terms have been agreed between the parties to settle this dispute but they wish these terms to remain private.”