A bench of Acting Chief Justice B D Ahmed and justice S Mridul also issued notice to the Foreign Investment Promotion Board (FIPB) and renotified the matter for March 12 to be heard with BJP leader Subramanian Swamy's plea challenging clearances granted to the airline.
The bench also asked the Centre, airline and other respondents to file their counter reply to an additional affidavit filed by Swamy, who has alleged that either the responses filed by the authorities before the court are "false and misleading" or the Director General Civil Aviation (DGCA) "has acted illegally and in utter disregard of law".
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Swamy later told the media outside the court that he intends to file a contempt plea against the Central Government on this issue of alleged "false representations".
During the proceedings, Swamy alleged before the bench that licence have been obtained by making false representations to this court.
He alleged that the USD 30 $ joint venture, between Tata Sons and Malaysia based AirAsia Berhad, had to show before the FIPB that the airline would be essentially controlled by Indians, but the same has not been done.
In its plea, FIA has sought quashing of the approval granted by the Ministry of Civil Aviation to the airline.
FIA has moved the high court after the Director General of Civil Aviation on February 21 granted a permit to AirAsia to commence its scheduled air operations. In its petition, the federation has also sought that AirAsia be "restrained from commencing business as an airline operator in India".