Justice Mukta Gupta said it is a very "unfortunate situation where the State and the officers feel unsafe and are being threatened by each other".
The court's observations came while hearing the bail plea of AAP MLA Prakash Jarwal, who was arrested on February 20 for allegedly assaulting the chief secretary during a meeting at Chief Minister Arvind Kejriwal's residence here on the night of Februaru 19.
"You cannot harass a complainant like this. By hook or crook, the chief secretary is being harassed. Is it not a ground to reject the bail plea?" the court said when it was informed by the bureaucrat's counsel that he has been served with a notice by the Privileges Committee of the Delhi Assembly asking him to appear before it with regard to a complaint made against him.
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The court said it was concerned that if "a person" can be assaulted in the presence of the Delhi chief minister and the deputy chief minister, what will happen at other places.
The court had on March 1 issued notice to the Delhi Police on Jarwal's bail plea and sought a status report in the matter.
Okhla MLA Khan, who was also arrested in the case on February 21, had yesterday moved his bail application in the high court.
A magisterial court had earlier denied bail to both of them, saying the matter cannot be treated in "a casual and routine manner" while dubbing them as "history-sheeters".
Jarwal had then moved a sessions court and was again denied the relief with the court saying the situation could not be more alarming when lawmakers do not respect the rule of law.