The high court had last month granted bail to Sharkel, who was arrested by Paradip police in November last year for alleged involvement in the murder of a shipping company official Mahendra Swain.
Soon after his bail petition was allowed, Sharkel was released from Choudwar jail here.
Alleging procedural flaws in the hearing of Sharkel's bail petition, the state government had filed a miscellaneous case in the high court urging it to recall the relief granted to the accused.
The Congress leader had surrendered before police last year soon after the Jagatsinghpur superintendent of police issued an executive order of lookout notice against him.
Pleading innocence in the case, he had filed bail applications, which were, however, turned down by two lower courts in the district.
The high court also adjourned the hearing of the bail petition of businessman Mahimananda Mishra to Friday next when public prosecutor Janmejaya Katakia sought some more time from the court to study the case.
An advocate of the Orissa High Court who allegedly had an enmity with Mishra was injured when bombs exploded in April 2013 near Press Square in the city.
Although the case was closed the next year, Mishra was booked by the city police in January after he was arrested by the Paradip police in the Swain murder case.
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