The HSE did not contest the order by the President of the High Court, Mr Justice Nicholas Nolan.
Labour Senator John Whelan is pleased with the news and said the HSE have now given a solemn undertaking to embark on meaningful consultations with the residents of the unit.
Mr Whelan said: "The Minister for Health, James Reilly has already committed to visiting Abbeyleix Hospital in person, and it is important that this ties in with a review of the elderly care strategy and the Government's policy of providing sufficient long-stay elderly care beds throughout Laois-Offaly and the midlands region.
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"The proposal by the HSE to close Shaen Hospital, Portlaoise it follows, should now also be shelved in light of today's High Court ruling, if the HSE are to honour the spirit of what has been agreed so as to relieve those residents and their families of the stress and distress this causes in the run up to Christmas."
Mr Whelan stressed that the campaign is far from over and he intends to care for the elderly and aging population.
(CD)
