Only two nights earlier, the bon vivant had hosted a more intimate function at his flagship restaurant Entrecote, with 17 guests treated to a custom-designed degustation menu to mark the milestone in April.

Claims that Entrecote underwrote the food, alcohol and service for the festivities outraged two investors in the South Yarra brasserie, who soon after filed a lawsuit accusing Mr Jones of financial impropriety, misuse of company resources and tax evasion.

The legal action was the culmination of months of infighting over the operation and accounting practices at the successful restaurant across from the Royal Botanic Gardens.

Mr Jones, known for his quirky taste in spectacles and flamboyant dress sense, has been a driving force behind a stable of popular eateries, including Snow Pony, The Stables of Como, Prix Fixe, Moor Please and Porgie & Mr Jones.

The allegations were - and still are - strenuously denied by Mr Jones, who claims the lawsuit was retribution for a soured business relationship with two of his investors, who were also major suppliers.

"I just don't understand how I'm being targeted here," Mr Jones said.

Nevertheless, Mr Jones was in danger of losing control of Entrecote because the disgruntled shareholders applied to the Supreme Court in May to have an independent external manager appointed to run the venue.

Mr Jones was accused in court documents of "misappropriating" tens of thousands of dollars in cash from the restaurant, paying staff under the table, and using company resources to supply his other restaurants - as well as to stage his 40th birthday celebrations.

The allegations were levelled by Entrecote shareholders Adam North and David Maconochie, who also run cattle grazier Hopkins River Beef - the meat supplier for the restaurant.

The lawsuit included claims of a $1 million "discrepancy" in the takings recorded in Entrecote's official financial reports since it opened in January 2015 and the existence of a system to employ staff off-the-books to reduce costs and avoid taxes.

"There was in the vicinity of $10,000 cash paid to employees each week in around March 2016 when I ceased employment," former manager Marty McCaig said in an affidavit. "This was recorded on a spreadsheet that was kept on a USB drive in the office at Entrecote."

"I would also take out approximately $10,000 for Jason that I'd wrap up; anything remaining went to the bank. On a regular basis I would get cash out of the safe with JMJ written on the outside and give it to Jones ... he said that it was for the shareholders' dividends."

An audit conducted by the shareholders' accountant also allegedly found that Mr Jones - who was on a $100,000 annual salary - received $82,000 in payments from the company bank account. Another $194,000 was allegedly paid to business associates and companies linked to Mr Jones.

Mr Jones has strenuously denied all allegations of impropriety and claimed Mr North and Mr Maconochie took legal action because Entrecote had ended its relationship with Hopkins River Beef over price and quality concerns.

"All I try to do is run honest businesses in Melbourne. It's hard enough in the industry with staff, keeping customers coming through the door. You can ring every one of my suppliers and we pay our bills on time, every time," he told Fairfax Media.

"I am not a person that is in this industry to screw anyone over. I'm here just to make a small living for myself, keep under the radar and no longer do I have partners in my business – it's just me. And that's because I've been screwed over so many times."

In his affidavit filed with the court, Mr Jones said he stored $97,000 in his safe at home as a "contingency" fund on behalf of the business and that cash takings had been used to pay $43,000 in dividends to the two shareholders whose investment in the restaurant was "on an outlay of nil".

All expenses for the birthday parties were also paid by him personally, Mr Jones claims.

A supporting affidavit was also filed by Ruth Giffney, one of the directors of the company that runs Entrecote.

However, Mr Jones also said in his affidavit that the "draft accounts" provided to the shareholders were "not accurate" and were being "re-done".

He also noted the Australian Taxation Office had been paid a lump sum of $145,000 and the company was now on a tax "payment plan" of $20,000 a month. "If there are any penalties that are payable then I will be personally responsible for them," he said.

In late May, Mr Jones and his other business partners at Entrecote are understood to have settled the lawsuit for more than $500,000.

Mr North declined to comment when contacted by Fairfax Media.

The legal stoush over Entrecote is the latest in a series of acrimonious business disputes involving Mr Jones and former investors, suppliers and the tax office.

In March last year, Hepburn Springs restaurant Moor Please run by Mr Jones closed suddenly after opening its doors only months earlier. The company went into external administration owing $42,000 to the tax office.

A silent partner in the business, who asked to have his name withheld, said a number of fixtures, including furniture, a $12,000 meat slicer and a sound system, were removed from the premises without permission. They were returned later when the man threatened legal action against Mr Jones.

The investor is understood to have lost almost $300,000 on the venture, while several suppliers were never paid.

In 2012, an investor in Porgie & Mr Jones sued Mr Jones to get access to the company's financial records amid concerns about the restaurant's operations.

chouston@fairfaxmedia.com.au