A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva made the PWD as well as Delhi government parties in the matter and listed it for further hearing on August 19.
It also refused to stay the construction saying there was no urgency.
The bench, during arguments, observed that toilets were "far from ideal" at the district courts at Tis Hazari and asked the authorities and the Delhi Bar Association to ensure that facilities are improved.
It asked the bar to give suggestions to improve the facilities, saying lack of amenities for disabled persons at district courts is an important issue while the construction of a water fountain was a minor one.
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The report was sought from PWD after the court was told that PWD was financing the redevelopment work.
The bar association told the court that the work was being undertaken to give a face-lift to the 50-year-old Tis Hazari complex.
It also told the court that the cost of the work was about Rs 15 lakh and not Rs 50 lakh or Rs one crore as claimed by petitioner Pankaj Yadav.
He has also sought an order "cancelling the sanction of the water fountain at Tis Hazari courts".