Liberal Party member Matthew Camenzuli had taken action in the NSW Court of Appeal, arguing that the process to endorse Ms Ley and two other sitting Liberal MPs was not constitutional under the political organisation's framework.

On Tuesday afternoon, Justice John Basten deemed there was not a role for the court to adjudicate in the process.

"The dispute is not justiciable," Justice Basten said.

"The court has concluded that the Electoral Act provisions relating to the nomination and endorsement of candidates do not create justiciable rights or interests arising from internal party processes of preselection."

In other news

Mr Camenzuli's barrister had argued there was a role for the court under the Commonwealth Electoral Act under amendments in 1983 and 1987 which provided for the registration of political parties and conferred functions on registered officers of those parties.

Justice Basten found the registered officer did not have a role in internal processes of preselection and "merely conveyed" candidate decisions of the party to the Australian Electoral Commission.

"The nomination and endorsement provisions do not confer statutory rights upon candidates at the anterior stage of preselection," he said.

Justice Basten also found the federal constitution of the party allowed a "broad power of intervention on the federal executive (to) bypass the divisional constitution".

He said in that context the committee that involved Prime Minsiter Scott Morrison and NSW Premier Dominic Perrottet and decided to approve Ms Ley's endorsement was "valid in any event".

Mr Camenzuli had taken action after being concerned that the NSW division's rules allowing members to vote in preselections were being gazumped by federal intervention.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: