Atesh in Central Milton Keynes has had its licence suspended following a request from Thames Valley Police.
The restaurant has been ordered to cease trading with immediate effect.
A decision was made by MK Council's licensing comittee last night (04/01).
The news comes as a murder investigation has been launched after 28-year-old Nagiib Maxamed was stabbed to death at the restaurant on December 27th.
So far, two arrests have been made in connection to the investigation.
A 29-year-old man and a 34-year-old woman, both from the Birmingham area were arrested in the early hours of yesterday morning (4/1) on suspicion of murder and attempted murder.
They both remain in police custody.
A post-mortem found Mr Maxamed died from a stab wound to the chest.
A second man was also injured and currently remains in hospital.
The local authority found during a licensing meeting held on January 4th that the licensing objectives for the prevention of crime and disorder and of public safety “are not being met”.
It heard from TVP that the management failed to immediately release CCTV footage when requested by officers.
An application made by the police said how staff failed to immediately report the incident to emergency services.
The council also heard from police how management failed to close down the event in which the incident occurred, and only did so when police insisted so as to “preserve the scene”.
The application was submitted by Superintendent Marc Tarbit who concluded the application saying: "Due to severity of the offence and the premises licence holder’s lack of initial support of the investigation, I consider this incident to be sufficiently serious enough to review the premises licence."
Additional information comes from Rory Butler, Local Democracy Reporting Service, @rorythomasb