A vacation bench of justices S Muralidhar and Manmohan Singh, while setting aside the September 29 ruling of the National Human Rights Commission (NHRC), also directed it to hear the matter afresh and pass a detailed order by taking into account the evidence shown by Bharti in his defence.
The AAP leader has also been asked to appear before the Commission on the next date of hearing in January.
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The high court passed the order while disposing of Bharti's appeal.
Bharti in his appeal, filed through advocate Deepak Khosla, had contended that the single judge had dismissed his plea as "premature" without "allowing fair opportunity to explain the facts of the situation before the NHRC and the legal grounds on which the writ petition was eminently maintainable".
In his writ petition against the NHRC order, Bharti had sought that the Commission's ruling be declared null as it was passed without giving him an opportunity to lead evidence in his defence.
He had also sought a compensation of Rs 100 crore from the Centre, NHRC and the city government.