Egypt could set the stage for resumption of some sort of dialogue process between India and Pakistan when Prime Minister Manmohan Singh meets Pakistan Prime Minister Yousuf Raza Gilani.

However, the issue of arresting Hafiz Saeed may cast a shadow on the meeting.

Official sources have told NDTV that Pakistan is obliged to act against Saeed if it is a civilised society. The other big question is whether Pak's ISI will be involved.

The sources have said that Pakistan has taken some steps against terrorism and arresting Hafiz Saeed is a key part of it, adding that it's irrelevant whether United Nations Security Council resolution mentions arrest of Saeed.

However, the sources added that it's too early to say whether composite dialogue framework will continue or end.

Meanwhile, the government is tightlipped on whether ISI chief will be part of future negotiations. Prime Minister Manmohan Singh had revealed that the ISI chief had briefed Indian state. Pakistan had also proposed hotline between Intelligence chiefs.

Earlier on Monday, Pakistan Supreme Court asked authorities to provide "solid grounds" for detaining Hafiz Mohammad Saeed. The decision came more than a week after two petitions were filed before it against the release of Saeed, a key accused in the Mumbai attacks, from house arrest.

A three-member apex court bench headed by Chief Justice Iftikhar Chaudhry adjourned the hearing of the two petitions filed by the Federal and Punjab governments till Tuesday after hearing arguments by Punjab's Advocate General Muhammad Raza Farooq.

Farooq told the court that the Punjab government had filed the petition challenging the Lahore High Court's order freeing Saeed on two grounds -- one was compliance with the UN Security Council resolution imposing restrictions on the JuD and the other was "confidential evidence" against Saeed and his close aide Col (Retd) Nazir Ahmed.