Matthew Camenzuli had urgently applied to the court seeking a declaration that members of the state executive can continue in office beyond Monday.
The executive last week voted in favour of seeking federal executive permission to allow it to continue to operate until an annual general meeting could be held at the end of March.
It has not been able to organise a state council meeting to select new office holders because of the COVID-19 pandemic.
But the federal executive including Prime Minister Scott Morrison instead set a 10-day deadline - until Monday February 28 - to rectify outstanding issues and endorse sitting federal MPs or face a broader federal step-in.
After hearing legal submissions on Thursday, Chief Judge in Equity, Justice Julie Ward, on Friday granted the declaratory relief that Mr Camenzuli sought.
Under a broader federal intervention, a committee including federal representatives would choose candidates for the upcoming election.
The move would allow several key federal MPs including ministers Sussan Ley, Alex Hawke and backbencher Trent Zimmerman to be endorsed for the upcoming federal election.
Mr Morrison has previously voiced concern the three MPs have not yet been endorsed, with an election due in May.
Earlier this month he accused some in the NSW division of playing "childish games" as he threatened intervention.
In recent years there has been a strong push within the NSW Liberals to allow greater grass-roots involvement in the selection of candidates.
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