A High Court judge has deferred giving her judgment on the future of an IPAS centre in Athlone, which was designed to house up to 1,000 asylum seekers.
The case will return to court in a month when the minister must show draft legislation promised to address an error made by the State in the planning process.
The judge also said the number of people being accommodated at the centre should be "diminished substantially" by the 21 July when the matter returns to the court.
Last December, Westmeath councillor Paul Hogan, and others, successfully claimed the minister failed to adequately "screen" the project for potential environmental impacts and that the minister lacked the expertise to carry out such assessments in an expedited manner.
The State conceded the legal challenge brought by five local councillors against the expedited plan.
Lawyers for the State asked the court to put a stay on the order quashing the use of a statutory instrument used to speed up the establishment of the controversial refugee facility at Lissywollen in Co Westmeath.
The State argued there is a "serious risk to the dignity and safety" of asylum seekers, if the Government was not allowed to use special powers to fast track refugee accommodation.
Aoife Carroll SC, for the State, said EU law requirements and legislative procedures were complied with, but not entered into record, amounting to an "error" but that the situation was considered to be an "emergency".
'Innocent parties'
A judgment on the granting of a stay was due today by Ms Justice Emily Farrell.
Ms Justice Farrell said there has been an absence of evidence that there is a risk of damage to the environment with no acceptance of that by the minister and councillor Hogan did not seek to establish that.
Ms Farrell said there are serious consequences for those staying in the accommodation centre, who are the "innocent parties and many may be vulnerable" and faced homelessness and rough sleeping.
She said the minister with responsibility was looking for a stay until November when the proposed legislation is expected to be enhanced.
She added that she would defer making any orders until after the upcoming Oireachtas summer recess and adjourned the case until the 21 July.
On that date she wants to see the draft legislation.
Ms Justice Farrell also said the minister must "continue to attempt to provide alternative accommodation" and wants to see the steps being taken by the minister to find accommodation.
She said the numbers on site should have diminished substantially" by then.
On Monday, the court heard there are 137 people staying at the centre.
Ms Justice Farrell said no new offers of accommodation can be given and no new work should be carried out at the site - apart from essential maintenance.
Protests have been held in Athlone over the plan to further develop army tent accommodation for the possible 1,000 asylum seekers, in up to 150 tents, on a site to the rear of an existing direct provision centre.
Along with councillor Hogan, four other Athlone-based representatives were part of the legal challenge, including newly re-elected Independent TD Kevin 'Boxer' Moran, Fianna Fáil councillors Frankie Keena and Aengus O'Rourke, and Fine Gael councillor John Dolan.
