The state government has been ordered to foot the legal bill for a fight with Salim Mehajer over his suspension from Auburn Council, in the latest legal victory for the controversial property developer turned politician.

Cr Mehajer won a technical victory in February when the Supreme Court set aside a tribunal order suspending him from council for four months over an alleged failure to declare his pecuniary interests.

The court found he was not required to disclose his financial interest in a commercial property when voting on changes adding an estimated $1 million to its value.