It said ARLA failed to evaluate properly with the most current information available and also maintained the Committee's decision was "irrational, disproportionate and unfairly discriminatory".
It also said ARLA's decision to uphold the 6pm closing time was irrational because it failed to account for the "abundance of choice for alcohol consumers" in the area after 6pm, meaning the condition would have no practical impact on alcohol-related harm.
Since the bottle store was opened in 2013, the committee heard evidence of incidents at or near the premises.
Capital Liquor had previously failed two controlled purchase operations, which test whether operators will sell alcohol to minors.
In December 2013 the sole director of the business, Qiang Liu, was involved in selling alcohol to a minor with the explanation "he had hay fever that affected his eyes" and couldn't tell it was a minor.
The committee also heard evidence that police were called to the premises by staff members to find a duty manager lying on the floor behind the counter.
Police said he was intoxicated but the manager disputed he was either unconscious or intoxicated.
"...Explaining that while he had consumed some wine at a restaurant, he had in fact just been sleeping on the floor because he had decided to have a nap."
Police also had evidence of 23 callouts to Capital Liquor during the period of its previous licence and 895 alcohol-related calls for assistance within a 200m radius of Capital Liquor's premises between July 15, 2016 and July 15, 2017.
Dr Stephen Palmer, the Medical Officer of Health, also gave evidence to the committee concerning alcohol related harm in the area.
He noted there was a heavy concentration of ambulance pickups for assaults near Courtenay Place in Cuba St and that a majority of those would have involved alcohol.
A study conducted by the Health Promotion Agency showed that 75 per cent of alcohol consumed in Wellington City is purchased from an off-licence store, such as Capital Liquor.
In the High Court decision, Justice Karen Clark dismissed the store's appeal.
She said the committee had ample evidence before it to reach its "overwhelming view" that Capital Liquor was one of the most high-risk off-licences in Central Wellington "if not the highest risk", that needs "exceptional management practices on the part of the licensee".
She said there was more than enough evidence to support the decision that the appellant was not suitable to manage a high-risk premise during evening hours.
"The fact the appellant breached the new licensing condition on 21, 22 and 23 December 2018 only further exemplifies its ongoing, casual disregard for regulatory compliance."
