"I have instructions to withdraw the petitions," the counsel for BJP leader told Justice J R Midha who then allowed the request.
Gupta had filed separate petitions challenging two orders of a lower court by which he was summoned as an accused and then defamation charges were framed against him respectively in the case.
The magisterial court had on August 6 found "prima facie" evidence against Gupta and ordered framing under section 500 (defamation) of the IPC against him in the case.
Earlier, during the hearing, Dikshit's lawyer Mehmood Pracha had told the High Court that the Chief Minister did not want "unnecessary" litigation and was willing to be "magnanimous" if Gupta comes "forward with the truth".
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The counsel for Gupta had opposed the framing of charges in the case saying the orders to summon and then frame charges against the leader were passed "without any legally admissible evidence."
"The trial court should not have allowed the CM to exhibit newspaper clippings during pre-summoning evidence as they can only be proved by the newspapers only," the lawyer had said.