Expressing concern that the admission process has already commenced, a bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal said if the process was stalled, it would lead to an "irreversible" situation.
"Since the issue relates to admission of children in entry level classes, if the notification (neighbourhood as the sole criterion for deciding the admission) is allowed to be acted upon, it would lead to irreversible situation and in case the notification is ultimately quashed, the consequences would be very complex and serious," the bench said.
"Hence, we do not find any justifiable reason to interfere with the order under appeal," the bench added.
The division bench was hearing an appeal filed by the AAP government against a single judge's February 14 interim order.
The single judge had stayed the Delhi government's new 2017-2018 nursery admission norm, observing that "a student's educational fatecan't be relegated to only his/her position on a map".
Upholding the decision, the bench headed by Chief Justice, had asked a single judge to dispose of the main writ petitions as expeditiously as possible.
The single judge had ordered an interim stay of January 7 notification till the final disposal of the pleas challenging the Delhi government's order.
In two directives on December 19, 2016 and January 7, the Delhi government had made it compulsory for the 298 private schools built on the Delhi Development Authority land to admit children for nursery who live in that neighbourhood or stay within a certain distance from the school.
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