Injunction filed against house modification

I have been living in an old construction house for last 35 yrs. I have modified my house by adding 1 room on the ground floor & demolishing the 1st floor slab & laying a new slab. I started the work without taking any permission from local municipal corporation. Municipal corporation levied development charges & penalty on this action just before laying down of the slab. I paid all such charges accordingly & have got an NOC receipt from the municipal corporation. Now after all the external modification & construction is complete, my neighbour has approached the court & filed for permanent injunction against me & municipal corporation saying that I have done this modification against the by-laws of municipal corporation. He has pleaded to direct municipal corporation for mandatory Demolition of the said modification. I was not aware of the bye laws & neither municipal corporation nor the neighbour objected while it was carried out. According to the neighbour, I should have left 30% open area, but have not done so, which is blocking air & light to his adjoining house. Now when everything is done, court has issued a notice to reply to this plea. I am currently laying down the floor tiles & getting the white wash done. Can court stop me carrying out the internal work at this stage? Kindly advice.