A bench of Justices A K Sikri and N V Ramana said it may remand back the matter to Delhi High Court to decide Kejriwal and other's plea seeking discharge in the case, on merit.
"What the High Court has said in its order appears to be wrong. We may set aside the order and remand it back for deciding the plea on merit," the bench said while posting the matter for further hearing on July 22.
He said the High Court has said the application for discharge in the case will be looked by the metropolitan magistrate at the stage of framing of notice but now that stage has also crossed.
Senior advocate Abhishek Manu Singhvi appearing for Amit Sibal alleged that Kejriwal and others are trying to delay the trial in the case by now raising the issue of discharge.
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The bench then said that in a complaint case, the question of discharge does not arise and wondered what will be implication if the High Court order is set aside.
The Delhi High Court in its judgement had asked the trial court to consider the pleas of Kejriwal and others including deputy Chief Minister Manish Sisodia, Shazia Ilmi and advocate Prashant Bhishan seeking discharge from the defamation case.
Sibal, who challenged the High Court verdict before the apex court, had earlier vehemently opposed the submission that there was a stay on the trial court proceedings in the case and it be allowed to continue.
allowing the accused to approach the High Court for quashing of the defamation case, but in the present matter the High Court has already decided the petitions of Kejriwal and others, Sibal had said.
Earlier, the apex court had issued notices to Kejriwal and others on the plea of Sibal.
The High Court had on January 16, 2014 refused to quash defamation proceedings against AAP leaders and others but had told the trial court to consider their discharge plea.
Challenging the order, Amit Sibal said the High Court cannot confer the power to discharge on a Magistrate in a triable case instituted on a private complaint.
The AAP leaders had moved the High Court seeking quashing of proceedings in the trial court.