Senior IAS officer and Vice-Chairman of State Planning Board K B Chandrasekher has been asked to intervene to settle the matter, Chandy said.
Stating that the situation was not alarming as reported in media, Chandy said civil servants have certain complaints and government was looking into it and find a solution.
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"There is no administrative impasse and any legal problem involved", he said. There were differences in the approach on certain issues. But the matter was blown out of proportion by the media, he said.
Chandy also denied allegation against Chief Secretary E K Bharat Bhushan levelled by Opposition leader V S Achuthanandan that he had concealed details of assets from the government.
Seeking leave for the motion, Mathew T Thomas (JD-S) brought to the notice of the House that senior IAS officer Raju Narayanswamy had complained before IAS Association that he was being harassed by the Chief Secretary.
Thomas also said faction feud among IAS officers has tainted the image of civil service and state administration have come to a standstill.
Not satisfied with Chief Minister's reply, entire opposition members led by Achuthanandan walked out of the House.
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