Marblehead selectmen steaming over liquor license tie-up

MARBLEHEAD – Selectmen feel ill-used and they want answers.Board members were informed Wednesday night that the owner of Zaika, a restaurant in the Village Plaza, has filed for bankruptcy and he has listed the town liquor license issued to that restaurant as one of the business’s assets.Zaika has been closed for months. Kulwant Jhikka of Jhikka Inc., the owner, appeared before the board more than once asking for further time to sell his property. For the past two months, according to correspondence, he has been in India tending to the illness of a family member.As a courtesy, board members continued the matter without revoking the license. Wednesday night they were informed in a letter from Attorney Kathleen Dwyer of Boston that Jhikka Inc. filed for Chapter 7 bankruptcy on July 2 after being pressed for back rent payments by the landlord. Dwyer said it happened while sale discussions were “pending.”Dwyer said the action was taken “in order for Jhikka’s creditors to get fair value for the assets, primarily the liquor license,” and noted that no actions can be taken against the property, such as the revoking of the liquor license. She said Attorney John Aquino, the Chapter 7 trustee appointed by the court, is now “the legal owner of the license” and will be contacting the board.”Marblehead is the legal owner of the license, but now it’s tied up in bankruptcy court,” said an angry Selectman Harry Christensen. He made a motion to inform Aquino that the license belongs to the town.Voice rising as he spoke, Selectman William Woodfin pointed that the board “went out of our way to adjust rules” for Jhikka. “I feel violated by this letter. I don’t care what any bankruptcy judge needs. I want to recover this license immediately,” Woodfin said. He made a motion to invite Aquino to the next board meeting to demand the return of the license.Board members unanimously approved both motions, with the understanding that the town counsel will review them before they are sent.The incident echoed a similar situation that arose 13 years ago when Rosalie’s Restaurant went bankrupt. At that time the sale of the assets was arranged during the bankruptcy action and the new owner applied for a transfer of the license.