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Manika lost her baggage containing sports equipment, while returning home from a tournament in Peru in a KLM Airlines flight and had sought help from the government to recover it.
Malaysia stunned India 3-2 in the quarterfinals.
However, Manush Shah, who had also filed a writ petition in the Delhi High Court against his non-selection, remains a reserve player with no changes made in the men's squad, which will be led by Sharath Kamal.
G Sathiyan was the best placed Indian male at 34 in the latest International Table Tennis Federation rankings
Justice Rekha Palli granted two days to the Central Government counsel to take instructions on the petition which alleges that on one occasion, national coach Soumyadeep Roy pressurised Batra to throw away a match.
Sharath Kamal overcame a sluggish start to beat Portugal's Tiago Polonia in the men's singles second round.
Batra defeated Ukraine's Margaryta Pesotska, 4-3, while Sathiyan lost to Hong Kong's Lam Siu Hang.
Apart from Rohit Sharma, wrestler Vinesh Phogat, 2016 Rio Paralympics gold medallist Mariyappan Thangavelu, table tennis sensation Manika Batra and Indian women's hockey captain Rani Rampal have been recommended for the honour.
The country has never managed to breach the double-digit mark with highest being six at London Olympics in 2012 -- two silvers and four bronze medals.
Sharath Kamal and Manika Batra became the first Indian pair to pick up a medal from the sport at the Games.