Mr Jethmalani, expelled by the BJP, has been appearing for Mr Kejriwal in the Rs 10-crore civil defamation suit filed by Mr Jaitley against Mr Kejriwal and five other AAP leaders for accusing the Finance Minister of financial bungling in the Delhi and District Cricket Association (DDCA).
A bench of Acting Chief Justice Gita Mittal and Justice Anu Malhotra said the issue raised through the petition was already pending before the Lieutenant Governor.
"If the authorities concerned are not taking any action against the issue raised by you, then only you can move the court. The LG is already seized of the issue. Therefore, there is no need of interference by this court," the bench said.
It further said this petition was totally a "waste" of the court's time.
Sensing the mood of the court, the petitioner and advocate Alakh Alok Srivastava wished to withdraw his plea, which was allowed by the court.
The plea sought direction to the Delhi government and LG to refrain from making any payment from public money towards the December 1, 2016, invoice or any other bill raised by Mr Jethmalani towards professional services rendered to Mr Kejriwal in the defamation case.
It also sought a direction to the Delhi government and LG to immediately withdraw the December 21, 2016, file which approved the legal bills of Mr Jethmalani.
Earlier, Mr Jethmalani had hit out at Mr Jaitley, alleging that the row over the Delhi government's move to clear his bills has been "instigated" by the Union Finance Minister as "he is afraid of my cross-examination".
He had also said it was the government's duty to defend the Chief Minister.
The senior advocate had said he would defend Kejriwal in the defamation case without charging any fee if the Chief Minister could not afford to pay him.
Earlier, Delhi Deputy Chief Minister Manish Sisodia had directed the General Administration Department to clear Mr Jethmalani's bills.
Mr Kejriwal had earlier defended his government's move, suggesting Mr Jaitley had filed the case after he raised the issue of alleged corruption in the DDCA when the BJP leader was at the helm of it.
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