Selvam, panchayat president of Ilampatti in Salem district, had moved the court seeking to stall the July 2013 inaugural function of the building, contending that the PWD Executive Officer had announced the inauguration by Minister Palaniswamy without inviting him and without any resolution in the panchayat.
Justice K K Sasidharan had granted a stay for the function.
The Salem District Collector and the PWD EO had later moved the High Court, seeking to vacate the stay.
Advocate General pointed out that the building was to be inaugurated by the state minister.
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The judge then asked counsel for panchayat president if he was ready to invite the minister, which elicited a favourable response.
The judge, who recorded the undertaking vacated the stay and directed that a resolution be passed in the town panchayat that the minister concerned would inaugurate the building and the panchayat president would participate in the function.
He then posted the matter for further hearing to August 26.