A division bench of Justices V M Kanade and P D Kode was hearing a petition filed by NGO Bombay Environmental Action Group complaining of ecological damage to the surface of table top of the hill station which sees a constant tourist rush.
In 2010, the High Court had banned horse rides at the tourist destination. In November this year, the ban was partly lifted with horse rides allowed in some section of the hill station.
The bench earlier this month directed two ecology experts and the chief officer of Panchgani municipal council to inspect the hill station and submit a report to the court.
"The report shall be on whether it is possible to ear mark certain area of land which can be used by horse cart owners for the tourists and what would be the effect on bio diversity and flora and fauna if horse carts are to be used in the ear marked area," the bench said.
The report will have to be submitted by January 4, 2013.