Grendel's Den's much publicized six near struggle for a liquor license ended yesterday when the Cambridge Licensing Commission approved its application by a 2-1 vote.

The Kennedy St restaurant was enmeshed since 1977 in a constitutional battle over a state law which allowed a neighboring church to block its alcohol permit request. In December the U.S. Supreme Court overturned the law and Grendel's received a rehearing on its case.

Shortly after, however community activists argued that the restaurant should be denied a permit anyway on the grounds that there are already too many alcohol licenses in the Square.

But the licensing commission ruled yesterday to give Grendel's the license in part because it was merely requesting the transfer of an existing permit, rather than the creation of a new one.

In a separate hearing, however, the commission unanimously voted to deny another Square restaurant Ruggles Pizza its liquor license request.

Ruggles was refused permission for the permit at a November commission meeting the result of opposition from the church and the community. But after the Supreme Court handed down the Grendel's decision the commission agreed to grant Ruggles a rehearing.

'Last Minute'

"Justice is served," Susan E. Kuelzer owner of Grendel's said yesterday of the decision. She added that she was worried even after winning the constitutional battle because we just didn't know until the last minute.

But Jeffrey Starfield owner of the Mass Ave pizza parlor, said he was disappointed with the decision adding that the commission's actions were arbitrary and unfair.

Mary Calnan, chairman of the licensing commission, defended the rulings, noting that Ruggles would have added another liquor license to the 31 already in the area, whereas Grendel's does not.

Calnan added that she did not think the Grendel's decision would set a precedent for issuing new licenses, but it might encourage several people whose licenses were vetoed by a church to reapply for a license.

Community members opposed issuing the licenses because of the possible connection between the number of liquor serving establishments in the Square and the high crime rate.

Gregory M Kennan a member of the Harvard Square Defense Fund said that this shows that the commission is beginning to take a harder look at the effect licensed establishments have on the surrounding community. He refused to comment on the Grendel's vote.

Others however, sharply criticized that decision Anthony Polillo, acting chief of police and a member of the commission who opposed approving the license, said "there is no need for more liquor licenses in the Square."

The Commission's meeting yesterday was a special session called to reach a decision on the cases, based on evidence presented in hearings last Tuesday.

Grendel's will have to wait another month before it can serve alcohol, pending routine hearings before the state Alcoholic Peverages Control Commission and a final inspection by the fire department, Calnan said yesterday.