LOS ANGELES, California (CNN) --An 11-judge panel of the 9th U.S. Circuit Court of Appeals will hear arguments Monday afternoon on whether to overturn a decision postponing the October 7 California recall election until March, the court announced Friday.

A three-judge panel of the same court had issued a ruling Monday delaying the vote until next year's presidential primary because of concerns about use of punch-card ballots in six counties. The court decided Friday to review the case with an 11-judge panel.

A hearing has been scheduled for 1 p.m. (4 p.m. ET) at the court's headquarters in San Francisco. Each side will have 30 minutes to argue its case.

In the recall election, voters will be asked whether to oust Democratic Gov. Gray Davis from office and, if so, who among 135 candidates should replace him. Davis has sunk in the polls amid a lackluster state economy and budget woes.

The 11-judge panel, picked by lottery, includes eight judges appointed by Democratic presidents and three appointed by Republican presidents.

Seven were appointed by former President Bill Clinton, who has been in California campaigning against the recall.

Friday's decision was only to review the smaller panel's ruling, not to overturn it. But the ruling has been put on hold until the 11-judge panel weighs in.

Recall proponents have vowed to appeal to the U.S. Supreme Court if the decision delaying the vote isn't reversed.

The 9th Circuit is considered to be among the most liberal appellate courts in the country -- and among the most frequently overturned by the more conservative Supreme Court.

Reacting to the decision, Davis, whose political life is riding on the recall vote, said he did not want to delay the vote, even though most political observers believe it could help him survive.

"The momentum is clearly growing against the recall. I believe we will beat the recall on October 7, and my attitude is, 'Let's just get it over with,' " he said after campaigning with former Vice President Al Gore in Los Angeles.

"Let's just have this election on October 7 and put this recall behind us so we can go on with governing in the state of California."

Dave Gilliard, chief strategist for Rescue California, the group that launched the recall, applauded the decision to review the case.

"The three-judge panel was wrong on the law and wrong on the facts," he said in a written statement. "Their decision was so faulty and so overtly political that we believed all along it would be overturned."

GOP front-runner Arnold Schwarzenegger also issued a statement saying the 9th Circuit "made the right decision" to review the case.

"Hundreds of thousands of Californians have already participated in this election by casting absentee ballots. They have every right to have their voices heard and their votes counted," he said.

The court is considering a suit brought by the American Civil Liberties Union on behalf of several minority rights groups over use of punch-card ballots in six counties, with about 44 percent of the state's voters.

The three-judge panel ruled punch cards could disenfranchise voters because of flaws in that voting system, which became notorious during the 2000 presidential election dispute in Florida. It postponed the election until March, when new voting systems will be in place across the state.

The state's chief elections officer, Secretary of State Kevin Shelley, and Ted Costa, who heads the pro-recall group Rescue California, objected to Monday's ruling and filed briefs supporting a review by the 11-judge panel.

The ACLU argued rehearing the case was unnecessary and said that with less than three weeks to go before the October 7 vote, there was not enough time for both the 9th Circuit and the Supreme Court to hear the case.

From CNN Correspondents Bob Franken and Frank Buckley, and Producer Silvio Carrillo