Police personnel were deployed outside the venue to prevent the author from entering the building.
According to the club administration, the decision was taken due to security concerns.
Sheikh said he had booked the venue six weeks in advance, however, he was denied entry when his guests were about to arrive.
Sarabjit had illegally crossed into Pakistan from Kasur on August 29, 1990.
He was arrested on charges of conducting four bomb blasts in Faisalabad, Multan and Lahore. He is named Manjeet Singh in the FIR that was registered against him. He was sentenced to death.
His counsel claimed it was a case of mistaken identity.
The Indian prisoner has already written two letters to the authorities requesting pardon, while an application has also been filed in the Supreme Court seeking withdrawal of a pending petition for reopening his case.
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