A bench comprising Justices Dipak Misra and Prafulla C Pant also decided to continue interim stay of criminal proceedings against Gandhi in the case, pending before a magisterial court in Bhiwandi in Thane district of Maharashtra.
"If you want to close this chapter, we think like this. I (just an offer) am formulating it like this. In the course of the hearing, certain suggestions were given...But the counsel for the respondent (RSS activist Rajesh Kunte) has said that the petitioner (Gandhi) should show an impression of regret, then only he would settle this.
Senior advocate Kapil Sibal, appearing for Gandhi, did not agree to the suggestion and said that he would rather prefer to argue the case.
He further alleged that the complaint was "motivated" and "malafide" and deserved to be dismissed.
The bench also asked respondent Kunte to file his response within four weeks and further said that Gandhi may file "rejoinder affidavit, if any, within four weeks therefrom."
The bench has already reserved its verdict on 27 pleas filed by persons including BJP leader Subramanian Swamy, Gandhi and Delhi Chief Minister Arvind Kejriwal challenging constitutional validity of the penal laws on criminal defamation.
The penal provisions make defamation an offence punishable
by up to a two-year jail term.
The Centre and various state governments stoutly opposed the plea for quashing of criminal defamation law on the ground that it worked as a deterrent to prevent people from maligning others' reputation.
They contended that scrapping of the law would lead to anarchy in the society when people would get away with impunity even after destroying the reputation of a person.
It was alleged by Kunte, secretary of Bhiwandi unit of RSS, that Rahul told an election rally at Sonale on March 6 that "RSS people killed Gandhiji".
Following the complaint, the magistrate's court had initiated proceedings and issued notice to Rahul directing him to appear before it. Gandhi has been summoned to appear before the trial court on January 6.
The Congress leader then approached the High Court seeking exemption from appearance and quashing of the complaint.
The prosecution had opposed the petition and argued that Rahul can plead his case and lead evidence during trial before the magistrate.
The High Court had dismissed the petition and refused to grant stay on its order. It had allowed the Congress leader time to appeal against its order in the Supreme Court. He had moved the Supreme Court in May for quashing the criminal case lodged against him for his comments.
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