The ruling removes any legal uncertainty surrounding the BCB's administrative activities and the conduct of its upcoming elections.
A division bench of the High Court comprising Justice Bhishmadev Chakrabortty and Justice Md Asif Hasan delivered the verdict on Wednesday after hearing arguments from both sides.
The matter had been partially heard on Tuesday before being adjourned for further proceedings.
The court's decision means there are no longer any legal obstacles to the BCB's ongoing operations or the scheduled 2026 election process.
The Attorney General and Additional Attorney General appeared on behalf of the state, while Barrister Mahin M Rahman represented the BCB during the hearing.
This was not the first legal challenge to the BCB's current administration and election process.
At least three previous writ petitions questioning the legality of the ad-hoc committee and election arrangements had also been dismissed, with the High Court declining to interfere in the board's affairs.
The latest petition was filed by six councillors on May 18, seeking the withdrawal of notices sent to various clubs regarding councillor nominations for the upcoming BCB elections.