Plans to halt the Arc 21 Waste Incinerator in Mallusk, Co Antrim, have been welcomed by the Alliance Party and the SDLP.
Alliance MLA David Ford said the decision by the Court meant there was an urgent need to clarify the ability of either the Secretary of State or the Civil Service to take decisions affecting the future of Northern Ireland.
He said: "The decision, while welcome locally, causes major uncertainty for Northern Ireland. With the future of civil servants taking decisions on big issues now uncertain, the Secretary of State must move Northern Ireland out of its current stalemate, restoring local accountable government urgently - or else risk slipping into uncertain direct rule."
Alliance Councillor John Blair added: "Alliance said from the start that while the technology may be acceptable, the location is unacceptable. The Mallusk site would have seen heavy lorries forced to travel through suburban housing with an already inadequate road structure.
"I want to congratulate those involved in the campaign locally, for their contribution, professionalism and dedication in standing up for their local area and putting right this wrong."
SDLP MLA Mark H Durkan said: "This is a hugely significant judgement, particularly given that the Judge recognised that the decision by the Department 'went against the premises of the devolved institutions'.
"The question for all of us now - must be how we move forward. The SDLP will be seeking an urgent meeting with the Head of the Civil Service to determine how he intends to instruct future decision making across the civil service. There are big questions for how things function here - both the British Government and the Irish Government should heed this judgement carefully as it underscores the urgency for restoration of local, accountable governance."
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