Industrial court's magistrate M P Chavda granted the stay, hearing a petition filed by Amar Barot, general secretary of the union which is also known as 'Textile Labours Association' (TLA).
The court also granted permission to hold election in the TLA within three months, which will be monitored by the industrial registrar.
The union was established by Gandhi in 1921 with the aim of bringing harmony between the labourers and the textile mill-owners. Ahmedabad, with its several textile mills, was then known as 'Manchester of India'.
As per TLA's constitution, workers of closed mills cannot be appointed to the executive committee, however three such members were found to be a part of the committee.