The division bench of Justices S J Vazifdar and Gautam Patel also asked the corporation to file a reply within two weeks to a public interest litigation filed by activist Ajay Joshi.
The PIL was filed in 2010. The court was today irked by the corporation's failure to respond to it despite several directions.
"If the TMC does not file its reply then we will have to consider whether it (TMC) will be able to issue licenses henceforth," the court said.
The court today also asked the Maharashtra Pollution Control Board to file an affidavit stating whether ready mix plants can get license to operate in residential areas.
The petition says that several RMC plants are operating in Thane, causing pollution. Joshi obtained some information about these plants under right to information in 2011 and petitioned civic authorities, seeking action.
In May 2011, the TMC issued show cause notices to some operators. Deputy Municipal Commissioner assured the standing committee in June 2011 that action will be taken immediately, but no action was taken, the PIL says.