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A division bench of Justice Ranjit More and Justice Anuja Prabhudesai granted the interim stay.
Sharma claimed the BMC notice was "bad in law" and served with mala fide intentions and prayed it should be set aside.
In his petition, Sharma said he had purchased a 1,000 square metres residential plot in Versova in February 2010 and after completing all formalities, he was given a full occupation certificate in November 2016.
However, he contended, the BMC sent him a notice in November 2014, claiming a part of the structure was illegal, after which he filed an application in the Dindoshi Sessions Court.
In December 2014, he secured an interim relief that restrained the BMC from taking action till the pendency of the application.
Sharma stirred up a major storm on September 9 after he tweeted about alleged corruption in the BMC to Prime Minister Narendra Modi.
"I am paying Rs 15 crore income tax for the last five years. Still, I have to pay Rs 5 lakh bribe to BMC office (every year) for making my office. Is this your 'Achhe Din'?" Kapil asked in a tweet to Modi.
Later, the Mumbai police lodged two FIRs against the comedian under various charges pertaining to his Versova bungalow and Goregaon flat.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)