The NSW Court of Appeal has reserved its decision after an appeal by the local government minister, Gabrielle Upton, over the council suspension case.
Ms Upton asked the court to overturn an injunction which stopped her suspending council.
In February, Supreme Court Justice Monika Schmidt granted the injunction against Ms Upton.
The minister said she had issued the suspension notice because of concerns that Michael Tooma, the man conducting council asbestos investigations, had a possible conflict of interest.
Justice Schmidt said it was “not clear at all” if the minister was acting on a “reasonable belief” that an interim administrator was necessary to restore the proper or effective functioning of the council.
The appeal court decision will be handed down on a date to be fixed.
