Counsel Datuk N. Sivananthan, acting for the applicant, Lim Mui Cheng, 42, told the High Court that his client was released on July 16.
Senior Federal Counsel Datuk Datuk Kamaludin Md Said, who appeared for Musa, informed the court that the Home Minister had signed a letter for her release but she would still be subjected to a further investigation.
He added that Lim's release had nothing to do with the suit.
Justice Datuk Ghazali Cha allowed the withdrawal application.
On July 2 Ghazali allowed Lim to cite Musa for contempt after police rearrested her despite being freed by the court in May this year.
On May 25, Justice Datuk Mohd Sofian Abd Razak allowed her writ of habeas corpus application on the ground of irregularities in her detention and ordered for Lim to be produced in court on May 27 to be freed.
However, she was rearrested after she stepped out of the court.
Lim was arrested along with her husband, son and her son's girlfriend on suspicion of drug trafficking in a raid at a house in Taman Mawar in Muar on April 27.
The housewife was placed in custody at the Johor Jaya police station under the Dangerous Drugs (Special Preventive Measures) Act while the others were freed within two days of the raid.
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