The lower court had also ordered the Dindigul SP to take action against the petitioner for his "misdeed".
Setting aside the order, Justice A Selvam allowed the petition by T Murugan, who was a sub-inspector when the case against Sathya was filed in 2001, and remanded the case back to the lower court.
The judge directed the lower court to implead all the police personnel who were responsible for the case,and complete the inquiry within one month.
The judge also made it clear that the order would not affect that passed by the lower court, discharging Sathya from the false case.
Muruguan, who is now with the Tamil Nadu Railway Police, said he was not responsible for wrongly impleading Sathya in the case. It was the Inspector of the Dindigul West Town Police station (his immediate higher officer), who was the Investigating officer and who framed the charge sheet against Sathya.
The Dindigul sessions judge, after studying the documents submitted by Sathya, had asked the state government to pay a compensation of Rs 3 lakh and recover the money from Murugan.
