Shabaz Sharif returned to his post as chief minister of Punjab later in the day, raising hopes that political turmoil in the country will ease.
The court last month nullified the election of Shahbaz last year as Punjab's chief minister due to a past conviction. As a result of the ruling, President Asif Zardari soon after removed the Shabaz-led administration and imposed direct rule.
The court on Tuesday also suspended a previous ruling barring Nawaz Sharif from holding elected office.