The petition, filed by Jagathalapradhapan of Madurai, also sought to restrain Nithyananda from interfering with the affairs of the mutt.
When the plea came up, Justice R Mahadevan reserved the order after hearing arguments.
Special government pleader M Maharaja, appearing for the Hindu Religious and Charitable Endowments department, submitted that the petition was maintainable.
"Any person can set a law in motion and make a complaint to the competent authority and the court can also look into the matter. If the court directs the HR & CE, it will oblige and take action," he added.
More From This Section
Senior Counsel for Nithyananda said his removal was not proper.
In December 2017, the court had passed interim orders restraining Nithyananda and his disciples from entering the mutt till further orders.
The court had on January 29 warned of issuing arrest warrant against Nithyananda if he failed to rectify the "misleading statements" made in his earlier affidavits that he was the 293rd head of the mutt.
Nithyananda was briefly appointed to head the mutt in October, 2012. However, the senior pontiff annulled the appointment later following protests by devotees.