Martic's defence counsel Predrag Milovancevic on Wednesday presented the trial chamber with a report by doctors who examined Martic in prison, citing emotional instability and a temporary psychological crisis in the last few weeks.
Based on these findings, Milovancevic requested that the trial be postponed for two weeks so that Martic could recover and proposed that the tribunal hear doctors who had examined him.
Prosecutor Colin Black opposed the motion, saying that the trial should continue until defence proved that Martic was unfit for trial.
Presiding judge Bakone Justice Moloto recalled that the accused did not show any signs of emotional instability after Babic's suicide on March 5 and that he attended the trial for a whole week after Babic's suicide.
His temporary emotional crisis could have been caused only by Milosevic's death on March 11, Judge Moloto said, warning that the medical report did not state what kind of therapy Martic had been receiving in recent days.
The trial chamber decided to grant the request and adjourn the trial until Monday.
Martic complained on Monday that he was unable to follow the trial because of the deaths of two people who were close to him, one being Milosevic, in whose defence he was expected to testify, and the other Babic, who testified against him, but who he said was a young man with a family.
Attorney Milovancevic criticised the prison administration for the death of "the most important witness against Martic and the most important indictee", stating that there were insufficient checks of how inmates were using medicines and receiving food from outside and voicing concern about his client and the lawfulness of his trial.
The trial chamber ordered that the defence provide a medical report on Martic's condition and discontinued the hearing.
Martic, 60, a former minister of the interior and defence and president of the self-proclaimed Croatian Serb rebel state, is charged with 19 counts of crimes against humanity committed against Croat civilians in Croatia's formerly occupied areas in the period from 1991 to 1995, war crimes in Bosnia-Herzegovina in 1994, and the shelling of Zagreb in May 1995.