Can the municipality legally sanction the building plan or object ?

There are two adjacent two-storied houses, having a common wall from top to bottom, owned by two different persons. One of the house owners has drawn up an agreement with a builder to demolish his house and build a multi-storied apartment building in its place. Though he had informed the adjacent house owner about his plan in writing, the latter has objected to it and has also filed an objection in the local municipality. Can the municipality legally sanction the building plan, overruling the objection ? What can be done to stop the demolition of the old house and the new construction ?