The hospital is run by Sanjay Gandhi Memorial Trust headed by Congress leader Sonia Gandhi.
The Lucknow bench of Allahabad High Court on Wednesday stayed the Uttar Pradesh government's order suspending the licence of Sanjay Gandhi Hospital in Amethi.
A division bench of Justices Vivek Chaudhary and Manish Kumar said that inquiry against the hospital would go on. The bench also asked the state government to file its counter affidavit.
The bench was hearing a petition filed by the Sanjay Gandhi Hospital administration against the government's order.
On September 18, the health department suspended the licence of Sanjay Gandhi Hospital in Munshiganj area of Amethi and halted OPD and emergency services, days after the death of a woman patient following an operation.
The hospital is run by Sanjay Gandhi Memorial Trust (SGMT) headed by Congress leader Sonia Gandhi.
Manoj Muttu, administrator of the trust, told PTI that a copy of the court's order will be submitted to the chief medical officer of Amethi and as per the CMO's directions functioning of the hospital will resume.
However, Muttu said he would like the hospital to resume functioning from Thursday.
On September 27, over 400 employees of the hospital sat on a dharna against the suspension of its licence. Local Congress leaders also staged a protest outside the CMO's office.
The woman patient, Divya (22) who was admitted to the Sanjay Gandhi Hospital on September 14, went into a coma during a surgery. Her family members alleged that she was kept at the hospital for more than 30 hours before being referred to Lucknow where she died on September 16.
The next day, an FIR of causing death by negligence was registered against four employees of the hospital, including its chief executive officer.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)