The bench, comprising Justice Bhaskar Bhattacharya and Justice P N Sinha, gave the verdict vacating the stay and asked Mr Dalmiya to respond within March 24.
The bench also stated that if Mr Dalmiya failed to comply then the BCCI could proceed as per its constitution.
The bench further observed that the court could not interfere in the internal inquiry of the Board of Control for Cricket in India and the BCCI had the liberty to initiate any kind of probe against any of its members for transparency in running the organisation.
The court also said that the interim stay order passed by the trial court was illegal and it was passed without hearing the submission of the BCCI.
Counsel S K Kapoor and Aninda Kumar Mitra appeared for the BCCI, while Siddhartha Shankar Ray, Shaktinath Mukherjee and P C Sen appeared for Mr Dalmiya.
Talking to UNI, BCCI's legal expert Ankur Chawla said, ''With this order Mr Dalmiya has to respond within March 24 following which the BCCI would review its position.
''If the clarifications are not satisfactory then the board can proceed as per clause 38 of its constitution,'' he said.