The NSW Government has won its appeal to suspend the Blue Mountains City Council over mismanagement of asbestos and other major issues.

Local Government Minister Gabrielle Upton issued a notice to suspend the council in February after repeated allegations of misconduct were unveiled by Ray Hadley.

The council was granted an injunction against the order in the NSW Supreme Court but has now been dismissed on appeal.

Mayor Mark Greenhill will use a seven-day stay on the order to decide what action council will take.

“It’s a victory for the New South Wales Government against a council which is run by a dope,” says Ray Hadley.

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According to Jennie Curtin and the Blue Mountains Gazette, Greens Councillor Kerry Brown has appealed to Minister Upton to hold an inquiry into Blue Mountains Council, rather than suspending it.