A banqueting hall and restaurant found hosting a wedding function with 65 people including children has been shut down, council bosses have revealed.
Manzil, on Bury New Road, Cheetham Hill, has been closed by the council until further notice for breaches of Covid-19 regulations.
The council said environmental health officers visited and found 'different households mixing together with no social distancing'.
That included 'people huddling together for photographs'.
The council added there was no attempt by staff to manage the behaviour.
Manzil banqueting hall and restaurant is one of two venues action has been taken against by Manchester city council for 'failing to uphold proper practices to stop the spread of Covid'.
It has been closed until further notice, the council said in a statement on Friday.
"Consideration was given to enforcement measures stopping short of full closure but the lack of understanding of the risks involved, and the need for Covid-secure practices, meant that only full closure was considered appropriate," the council said.
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The Irish World Heritage Centre on Irishtown Way, Cheetham Hill, has also been barred from hosting functions until further notice.
The council said it has also been ordered not to have DJs, live bands or other live music performances.
Any recorded music played must now be kept at background level.
The council said visiting officers 'observed groups of males dancing and congregating', and music being played so loud 'that normal conversation was impossible'.
"Around 80 people were also witnessed having a sit down meal with no social distancing involved," the statement added.
The Manchester Evening News has contacted both venues for comment.
David Regan, director of public health for Manchester, said: "Manchester's coronavirus infection rates are rising and community transmission is driving this.
"Hospitality settings, where not managed properly, have the potential to contribute significantly to this spread.
"That's why all premises have an urgent responsibility to ensure both that they have safe practices in place and that these are properly managed."
Councillor Rabnawaz Akbar, executive member for neighbourhoods, said: "Gatherings between different households are simply not allowed in Manchester at the moment.
"We have one of the higher rates of Covid-19 infection in the country and the extra restrictions which are in place are there for a reason - to stop the spread of the virus.
"Many hospitality businesses are doing a sterling job of keeping customers safe but as these cases show we will take swift action where this is not the case."
The council said it was working with both venues to improve their Covid-19 safety arrangements.
The directions use powers under the Health Protection (Coronavirus, Restrictions) (England) (No.3) Regulations 2020.
The council said it would review the conditions every seven days.