Here's a synopsis for Grotesque from Nippon Cinema: "The film begins as a beautiful young girl named Aki (AV actress Tsugumi Nagasawa) waits for someone at a coffee shop. However, she doesn't notice that a stranger is closely observing her every move. Soon, Kazuo (Hiroaki Kawatsure) arrives and sits down with her. They share a few laughs before leaving the shop and begin walking down the street together. The person that had been staring at Aki follows them, and his footsteps gradually get closer. Kazuo and Aki later wake up in a dimly lit room, tied up and gagged, with absolutely no idea what happened to them or how they got there. A man named Tachikawa (Shigeo Ã”sako) appears in front of them, and given his vast array of power tools and scary-looking instruments he definitely has some rather disturbing plans in store for the two of them. To Aki's horror, Tachikawa proceeds to stab Kazuo in the stomach with an ice pick, but he doesn't kill him just yet. Instead, he carefully tends to the wound and disinfects the area before continuing the torture. Tachikawa hacks away at his captives, slicing off and mutilating various parts of their bodies in the most obscene ways imaginable. And if by chance they happen to pass out from the pain, he simply wakes them up with smelling salts so they don't miss anything."
I believe its from the director of Carved. (The Slit-Mouthed Woman)