Joint Registrar Pankaj Gupta directed the chief minister to deposit the cost while granting him two more weeks to file his response.
The high court had on May 23 sought the response of Kejriwal on why defamation proceedings should not be initiated against him.
However, Kejriwal's counsel Rishikesh Kumar had sought more time to file the response which was opposed by advocate Manik Dogra, counsel for the Union Minister.
During the cross-examination of the Union minister on May 17 before the Joint Registrar in the Delhi High Court, Jethmalani had allegedly used a term Jaitley had found objectionable.
A day after, another high court judge, who was hearing a connected matter, had termed as "scandalous" the remarks allegedly made by Jethmalani against Jaitley before the Joint Registrar.
Jethmalani, who was expelled from the BJP for six years in 2013, had told the Joint Registrar that he used such words against Jaitley during the proceedings on the instructions of Kejriwal.
However, Kejriwal's counsel had submitted there was no such instruction.
The court proceedings had ended abruptly following heated exchanges between the lawyers of Jaitley and Kejriwal. Jaitley had then warned Jethmalani that he would aggravate the charges against Kejriwal.
Jaitley, who had rejected all allegations levelled by the AAP leaders in December 2015, filed a civil defamation suit seeking Rs 10 crore in damages from Kejriwal and five other others, claiming they made "false and defamatory" statements in the case involving DDCA, thereby harming his reputation.
The AAP leaders had allegedly attacked Jaitley and some of his family members in various fora, including social media platforms, over alleged irregularities and financial bungling in the DDCA.
Besides the civil defamation suit, Jaitley has also filed a separate criminal defamation case in the trial court against the AAP leaders.
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