"I am not for any controversy," he said to a question at a press conference while refusing to comment on the behaviour of K Sudhakaran, who threatened the SI at Valapattanam police station in Kannur on October 31.
"We are holding talks to sort out the issue," Chandy said.
Asked whether action would be taken against Sudhakaran, who represents Kannur constituency in Lok Sabha, he said Home Minister Thiruvanchoor Radhakrishnan had already made the government's position clear.
Radhakrishnan had said that days of getting things done by threatening police officers were over and further steps in the matter would be taken only after getting the probe report.
"Public servants should keep their composure and police should do justice," Chandy said to repeated queries.
Meanwhile, IG of Police Jose George who conducted a probe on the issue gave a clean chit to the police official.
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The inquiry found that Sub Inspector V K Siju, who was threatened by Sudhakaran for taking a local Youth Congress leader into custody, did not commit any procedural lapse in carrying out his duty.
Police sources said the IG would submit the report to DGP.
Sudhakaran had barged into the station with some supporters and IUML MLA K M Shaji, threatened the SI and demanded release of the youth Congress local leader.
The man had gone to the police station for release of two youths arrested in connection with illegal transportation of river sand. The incident was aired by television channels, causing embarrassment to the Congress and UDF government.
The Home Minister had asked IG, Kannur range, to probe the issue and ascertain if there was any lapse on the SI's part in handling the case, as alleged by Sudhakaran and his supporters.
The report said the SI had followed due procedure under the Police Act in taking Youth Congress activists into custody. The inquiry also did not come across any evidence to substantiate Sudhakaran's charge that locked up persons were roughed up at the police station.
The issue also has its bearing on the "group equations" in Congress with some expressing displeasure at Sudhakaran's conduct though his supporters rallied behind him.
Posters had appeared in various places in the district decrying the Home Minister for ordering a probe and taking a position that the law would take its course.