During chapter 12 you will enter an abandoned love hotel, upon entering the second floor and going straight you will be greeted with a room where Sugiura is being hung.
Fight the two enemies in the room but keep one alive, with as low health as you can get them without defeating them. You will need to beat them when the timer is under 10 seconds, ensure that the time you beat them is not too tight, as the timer takes 1-2 seconds to actually stop after the final hit.