Ministry of Sound, the London nightclub, has threatened its local council with a multimillion pound lawsuit, it emerged on Monday, a day before the first of two critical planning meetings which the club's owner fears could lead to the closure of the 20-year-old venue.

A letter sent by lawyers for the south London club to the chief executive of Southwark council says it will seek to hold the authority liable should it be forced out of business by planning permission being granted for two tower blocks next door.

Ministry's lawyers argue they will hold Southwark responsible "for any and all financial loss it suffers both to the nightclub and any resulting loss to its global brand and associated businesses" and warn that any liability arising from the closure of the club "would amount to many tens of millions of pounds".

On Tuesday, Southwark's planning committee will consider whether to allow a 22-storey building of 38 flats to be built a block away from the club. The plan has been submitted by a company called Neobrand.

Next month, the committee will consider a 41-storey building containing 255 flats directly opposite Ministry of Sound, proposed by the Isle of Man based Oakmayne Properties.

Until now there has been no private housing close to the club in Elephant and Castle. However, Lohan Presencer, Ministry's chief executive, which is also one of Britain's two largest independent record labels, believes that once homes are built nearby complaints from residents are inevitable.

The lawyers' letter to Southwark council boss Annie Shepperd says it is "highly likely" that the noise of music and the activities of people queuing and leaving the venue "would result in nuisance claims being brought against our client". The letter adds that "our client would have difficulty in defending such claims", which could result in the loss of its licence.

Ministry of Sound has been fighting Southwark for several years over the redevelopment, complaining that the council has failed to conduct noise surveys at the venue's busiest times, thereby underestimating the true sound levels.

The club also says that councillors on the planning committee have refused an invitation to formally inspect the club site and that former councillors and officers are advising Oakmayne.

Ministry's lawyers conclude: "Despite our client's continued representations, the council has proceeded with, at best, indifference to these potential consequences."

Labour-run Southwark says it does not want Ministry forced from the site, and that it believes a balance can be struck between developer and club.

Fiona Colley, the councillor responsible for urban regeneration, said: "We do understand the perspective from both sides, and appreciate that Ministry of Sound is a valued club, business and employer in the area, but we hope a balance can be struck which allows them to continue alongside the equally important regeneration programme for Newington Causeway."

London nightclubs often have only short-term existences, with regular threats from property development. The Cross in London's King's Cross closed in 2008 ahead of the wider redevelopment of the site behind the station; Turnmills in Clerkenwell, the first UK venue with a 24-hour licence, also closed that year and is due to be turned into so an office block could be built.

In 2009, central London's The End was shut to make way for a development but this was delayed by the financial crisis.