Justice G S Sistani termed as "illegal" the notice of the civic body and said that it should have consulted the university before taking such measures.
The SDMC, on December 31 last year, issued a notice asking the university to pay around Rs 2 crores as dues towards property tax. It was allegedly due for the period starting from 2010.
The court was hearing the plea filed by the university against the notice of SDMC.
The university alleged that the civic agency had "threatened it of coercive action such as attachment of property" for failing to pay the tax.
Atyab Siddiqui, appearing for Jamia, told the court that the agency has "failed to take the view of the university before issuing the notice and that was in violation of natural justice."
He further said that the agency had levied property tax on Jamia treating it as a corporate institution rather than as a Central University.