Bombay High Court said that BMC's action of demolishing part of Kangana Ranaut's bungalow smacks of malafide.
Quashing demolition order, HC said the act was done to cause substantial loss to the actor.
The court also said that it does not approve of authorities using 'muscle power' against any citizen.
The bench was hearing Kangana's petition challenging the demolition carried out by BMC.
The 33-year-old actor took to Twitter and responded to the court's order.
Demolition at Kangana's Pali Hill bungalow in suburb Bandra was carried out on September 9.
Kangana had sought Rs 2 crore in damages from BMC and urged court to declare action illegal.
Bench added that it was appointing a valuer who would hear petitioner and BMC on monetary damages.
Kangana had filed the petition on September 9 when the demolition process was initiated.
Bombay HC had, in an interim order on September 9, stayed the demolition work.
