Its damaged state prompted the Canterbury Earthquake Recovery Authority (Cera) to issue a section 38 unsafe building notice, which demanded urgent action.
Anglican Bishop Victoria Matthews announced plans to deconstruct the cathedral to a safe level of 2-3 metres above the ground last year.
The decision sparked public protests and the GCBT, led by former MP Jim Anderton, battled to save the landmark city centre building.
They sought a declaratory court judgment to determine whether the Anglican Diocese of Christchurch's decision to deconstruct breached an Act of Parliament designed to protect church buildings.
Justice Chisholm said the CPT, while having to make a difficult and complex decision under tight time pressures, was wrong to think its cathedral trust was there only for the advancement of religion and maintenance of the ecclesiastical institution, not particular buildings.
Today, lawyer for the CPT, Jared Ormsby argued that since the parish paid for the church's insurance policy, which covered all of its assets, as well as material damage, contents and fixtures, the pay-out should be for the whole parish - not just one particular building.
He said the case centred around two fundamental questions: whether the insurance money should only be used for the cathedral, and whether a cathedral is a simply a building or one that includes "wider spiritual elements and dimensions".
When members of the congregation gave their offertories, he said there was no doubt in their minds that it was for "the wider purposes of the church".
And the money is held "on wider terms", Mr Ormsby said.
"The funds are held not only for the business of the cathedral, but for the purposes of the cathedral parish."
The hearing, before Justice Graham Panckhurst, continues and is expected to conclude tomorrow.