The fire at roof-top restaurants 1 Above and Mojos Bistro claimed 14 lives on December 29.
BMC's counsel Anil Sakhre today said the civic body was already conducting a detailed inquiry, and action had been taken against several officials.
"Twelve officials from the BMC and fire department have been booked for negligence and a departmental enquiry has also been initiated against them. We are taking all necessary steps. So there is no need for a judicial inquiry," Mr Sakhre said.
The bench asked the Maharashtra government to state if it was in favour of a judicial inquiry, adjourning the hearing to tomorrow.