"List the matter for order by this court on December 12," a bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal said.
The bench had on November 7 reserved its verdict for today on two pleas, which AAP government had termed premature.
Delhi government had defended its decision to award Rs one crore to the family of Grewal, saying it was a "policy matter" which has to go to the Lieutenant Governor (LG) for approval.
Another petitioner Puran Chand Arya, through his counsel Abhishek Choudhary, had sought a direction to restrain the government from going ahead with the decision till the court pronounced its order.
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Retired Army Subedar Grewal had on November 1 committed suicide allegedly over 'One Rank, One Pension' (OROP) when a protest on the issue was going on.
The petitioners has claimed that the AAP government has decided to give 'martyr' status to Grewal and they should not award compensation like this as it was taxpayers' money.
Advocate Kaushik, who had on two earlier occasions challenged similar decisions of the Delhi government granting compensation and government job to kin of individuals who had committed suicide, told the bench that this was the third time when the government has taken such a decision.
In his plea, he alleged that by granting compensation and a job to kin of the ex-serviceman, Kejriwal government has "glorified, justified, supported, propagated and consecrated the act of suicide".
He has sought directions from the court to quash or set aside the decision saying it amounts to "misappropriation of public funds".