The court also observed that the complaint was preferred after seven years of the alleged incident.
Earlier, a single bench had dismissed her plea.
Chandy had claimed that the cases were "politically motivated" and suggested an effort by the Left Democratic Front (LDF) government to deflect people's attention from the Sabarimala temple controversy.
The woman had accused Chandy of sexually exploiting her at Cliff House, the official residence of the chief minister, in 2012.
The woman and her co-accused had allegedly duped several investors of crores of rupees by offering to set up solar panel units for them.
The commission's report, tabled in the Assembly on November 9, 2017, stated that Chandy and four of his personal staff members had "assisted" the woman and her company in cheating customers.
The report contained details of a letter written by the woman on July 19, 2013 to the then police commissioner.
The court had in May expunged the letter's contents from the commission report after Chandy sought quashing of the panel's findings against him.
'In limine' is a Latin term that means at the beginning or on the threshold.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)