On March 28, a division bench of the high court headed by Justice Haroon Rashid, ordered a Central Bureau of Investigation (CBI) probe into an alleged land deal involving Salim Raj, a former gunman of Chandy.
The court also said the chief minister was duty bound to explain to the people why he did not apply his mind when selecting his personal staff.
The opposition Left has gone hammer and tongs against Chandy, demanding that he resign.
On Monday, advocate general K.P. Dandapani, representing the government, filed an appeal in the division bench of Justice K.M. Joseph.
On Tuesday morning, the division bench heard Dandapani who said it was most unfortunate that the single bench made this adverse remark, without even hearing Chandy.
In the afternoon, the division bench stayed these two references but added that the CBI probe should go on. Incidentally it was Chandy himself who had asked that the alleged land deal involving his former gunman be handed over to the CBI.