Justice Abraham Mathew directed the accused, P Krishnadas, to furnish a bond of Rs 1 lakh.
The judge also observed that non-bailable offence was incorporated after the arrest of the accused.
Krishnadas and three others were arrested on March 20 on a complaint of harassment by Shaeer Shoukathil, a student of the law academy at Lakkidi, Palakkad.
Slamming the investigation officer for the lapses in the probe, the Court asked why "undue haste" was shown in arresting Krishnadas.
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The judge further said, there are "serious contradictions" in the statement of the student which could not be understood by the investigating officer.
Krishnadas is also an accused in a case pertaining to the alleged suicide of Jishnu Pranoy, a 1st year computer science student of the Engineering College run by the group in Thrissur.
However, he was granted anticipatory bail in the case.
Jishnu's body was found hanging in the hostel bathroom in January.