Six councillors were not at a meeting to determine the CEO's future on Monday, after Armidale Regional Council sought an injunction against five of them.
A temporary injunction was granted in the Land and Environment Court on Monday by the duty judge Justice J Robson.
The matter - Armidale Regional Council v Margaret O'Connor - is returning to court on Tuesday where arguments will be heard by both sides.
The six councillors had called for Monday's extraordinary meeting to terminate the contract of CEO Susan Law, which has now been deferred to another extraordinary meeting on June 10.
The council sent out a media release late on Monday that said The Land and Environment Court would hear further argument in an interim hearing tomorrow at 10am.
"As the matter is currently before the courts, it would be inappropriate to issue any further comment at this time," the statement continued.
"More detail on the outcome of the interim hearing tomorrow will be provided in due course."
Six councillors did not attend a meeting of Armidale Regional Council on Monday afternoon, which they had requested to terminate the contract of CEO Susan Law.
But with six of the 11 councillors not there, the meeting, which was being held online due to social distancing rules, did not have a quorum and the matter has now been deferred until June 10.
The six - Ian Tiley, Margaret O'Connor, Jon Galletly, Debra O'Brien, Dorothy Robinson and Andrew Murat - were all apologies, despite all signing a letter to the mayor last month, calling for the extraordinary meeting.
The Armidale Express spoke to one of the six late on Monday, but they said they could not comment as it involved a legal issue.
Late last week, one of the councillors supporting Mrs Law, Diane Gray, said that community sentiment was against terminating Mrs Law's contract.
She said councillors had been inundated with emails urging the councillors to work together.
Sign up for our newsletter to stay up to date.