The Bombay High Court in India has revoked the ban on Nestle's Maggi noodles and ordered regulators to undertake fresh tests on the product.
This comes a day after the Indian government sued the company to pay $100m in settlment for its illicit trading practices.
The company has been accused for its misleading advertisements related to Maggi noodles.
In June, Nestle challenged the regulatory order to ban nine variants of Maggi Instant Noodles and Maggi Oats Masala Noodles with Tastemaker.
In response to the company's petition, the court has now ordered three federal-government labs to retest the Maggi samples.
Nestle will be allowed to resume the production and sale of Maggi if the product is found to contain lower than permitted levels of lead.
Justice Vidyasagar Kanade was quoted by the AFP news agency as saying: "We have examined the evidence in great detail. Since the petitioner Nestle has already agreed not to make and sell Maggi until the food authorities are satisfied, we see no reason to allow any relief to food authorities."
Nestle India in its website said that it "remains committed to working with the FSSAI, FDA Maharashtra and other stakeholders".
