Judge M L Tahaliyani Khan adjourned the proceedings till today following differences over the issue of jurisdiction.
Tahaliyani raised the issue of jurisdiction as soon as the hearing into the case began and said that the matter should have been brought before a magistrate.
Earlier, Ali, who was admitted to Mumbai's JJ Hospital after he complained of "chest pain", said he is a victim of a political conspiracy.
Ali was arrested on Monday night by the Enforcement Directorate in Mumbai under the Prevention of Money Laundering Act.
He has been summoned by the ED to appear in person for investigations under the Prevention of Money Laundering Act on Mar 10. The Income Tax Tribunal had on Mar 4 issued a showcause notice to Hasan Ali.