A bench comprising justices P N Raveendran and Devan Ramachandran held that a minister cannot file petition against his own government, which had ordered the district collector to look into the matter and submit a report.
There was a violation of the collective cabinet responsibility by the minister, the court held.
"It shows that you have no trust in your own government and chief minister," the bench said, observing it was "extremely improper" for a minister to file a petition against his own government.
He also stated that he approached the court as an ordinary citizen and not as a minister.
Earlier, the court gave an option to Chandy to withdraw the petition, but he did not do so following which it passed the order.
Opposition Congress and the BJP have demanded Chandy's resignation following allegations of large-scale violation of the Kerala Land Conservation Act and Conservation of Paddy Land and Wetland Act by the tourist resort run by Water World Tourism company at Alappuzha in which he has stake.
The district collector of Alappuzha also fell into their hands, he charged.
He contended that an 'unfair' inquiry was conducted by the district collector disregarding principle of natural justice after the 'intervention' of the office of the revenue minister.
During arguments today, counsel for Chandy, a businessman -turned-politician representing the NCP in the cabinet, pressed for expunging any reference to the minister in the report.
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