Justice A B Chaudhari quashed non-bailable warrants issued against Khaira and asked the trial court to decide the matter on merit, Khaira's counsel Mehtab Singh said.
Khaira had moved high court on November 3 against the Fazilka court's order.
While challenging the summons, Khaira had asserted that an attempt was being made to tarnish his reputation.
Khaira, in his petition, asked how he could be summoned after the trial court had already concluded the case and convicted the accused.
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The court had sentenced nine people to imprisonment in a trans-border heroin smuggling racket which surfaced in 2015.
Meanwhile, Khaira told media that his fight against drugs will continue.
"I still have options to file a review petition or move the Supreme Court," he said reacting to the HC order.