A bench comprising Chief Justice D Murugesan and Justice V K Jain cited a verdict of the Supreme Court which had said the courts would desist from hearing matters, relating to environmental issues and, rather send all of them to the green panel which came into being in 2010.
"It would be appropriate if the matter is transferred to the tribunal," the bench said.
The PIL, filed in 2009 by Sukhdev Vihar Residents' Welfare Association, has alleged the waste-to-energy plant, generating electricity at Okhla near a colony, burn wastes which releases harmful 'dioxins' into the air.
The citizens, living in the neighbourhood, were falling sick with respiratory and other ailments, it has said and sought its closure also on the ground that it was commercially not viable.
As per the rules, such plants cannot be established near residential areas, it has said.
Earlier, the Delhi government and other concerned authorities had taken the plea that the plant was safe and the state-of-the-art technology had been used and, hence, it did not pose a threat either to the people or the environment.
Moreover, it had provided the government a solution to tackle the ever-increasing piles of waste, being dumped on prime land, polluting groundwater and air, it had submitted.