A bench of Chief Justice G Rohini and Justice Jayant Nath said the Supreme Court has fixed a deadline for deciding these matters by end of July.
"We cannot stay the matter at the fag end of proceedings," the bench said, adding, "Time has been fixed by the Supreme Court. We cannot stay the proceedings here."
"As per Article 131 (of the Constitution), Supreme Court has the exclusive jurisdiction in a dispute between the Union of India and a state provided that the dispute is of a federal nature. We have to delve into this aspect," senior advocate Indira Jaising, appearing for the AAP government, said.
"I will request that judgement be not passed," she said, adding, "I am concerned about the Supreme Court's deadline."
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"Let us hear the arguments first. The judgement stage is away," the bench said.
To this, Jaising said, "There should be an ad-interim stay on the judgement till next Monday."
However, the bench observed, "We are not going to pass any judgement till next Monday."
"File your (Centre) counter on this aspect," it asked the counsel appearing for Centre and fixed the matter for May 9.
The arguments in other matters would continue tomorrow.
The Delhi government on May 28 last year had approached the high court challenging the Centre's notification of May 21 giving LG absolute powers to appoint bureaucrats in the city.
It had also challenged the July 23, 2014 notification limiting jurisdiction of the Anti Corruption Branch to Delhi government officials only.