Justice Suresh Kait asked Thampu's counsel "why can't the Principal behave himself" and "why he is acting like this", as he heard of the plea by Subha Kumar Dash, who has sought contempt proceedings against Thampu.
The court also remarked that the Principal's actions were leading to adverse publicity.
Thampu had suspended Dash last year on charges of engaging in "gross misconduct", after which the administrative officer had moved court accusing him of forcing him to convert to Christianity.
Advocate Sunil Mathews, appearing for Dash, alleged that despite the court's order, his client was made to work out of a store room which was used for storing hundreds of laptops, unalloted to students.
Thampu's counsel Romy Chacko opposed Dash's contentions and said the Principal was a victim of a "malicious campaign by powerful vested interests", who were targeting him.
Later, the court went on to question Thampu's lawyer as to why the Principal was treating Dash like this and why he was making the officer to work out of a store room without basic amenities like a water cooler.
The court posted the matter for July 7 and asked the parties to explore possibilities of a settlement in order to solve the problem.
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