The committee had already visited the site at Wesleymount, Church Road, California, where local councillors James Kerr and John McLuckie raised concerns including a dispute over access to the site.
Officers from Falkirk Council told the committee that the issue of who has a legal right to access the site was not something that would affect a planning decision since planning permission is often granted to people who do not own a site.
SEPA was approached for advice on flooding as the occupant is said to have an unauthorised sceptic tank, but the environmental watchdog said that any problems of drainage should be dealt with by Falkirk Council.
Officials from the planning department recommended that permission be granted.
However, Labour councillor Joan Coombes said she did not feel comfortable granting permission for something that was currently being disputed in the courts and asked that the matter be delayed to see the outcome.
Conservative councillor Lynn Munro agreed, saying there were too many unresolved issues for her to be happy with granting retrospective planning permission.
After a vote, the committee agreed to put off making any decision until the result of the court case is known.