It will now not go ahead until the Environment Minister, Edwin Poots, makes his final decision on the scheme.
The group launched a challenge after Mr Poots announced his intention to approve planning for the controversial scheme last August.
Mr Poots is now expected to decide whether to issue a notice of opinion on the proposed power plant at Glenavy or to call a public inquiry.
Judicial review proceedings by a group opposed to the facility have now been adjourned until his intentions are confirmed.
The Campaign Against Lough Neagh Incinerator (CALNI) launched its challenge after Mr Poots issued a draft indication of his intention to approve planning for an incinerator he has said will create up to 30 permanent jobs.
The multi-million pound plant would use chicken waste, including poultry bedding and meat and bone meal, to produce electricity. The plans by Rose Energy, a group backed by poultry producers, has met opposition from local residents who argued the facility would blight Glenavy’s rural landscape and the natural beauty of the Lough Neagh area.
CALNI has also criticised the minister for not holding a proper and full public inquiry into the application.