Sasikala had said Mr Nariman's presence in the bench might be misconstrued. Her argument was put forward by Attorney General Mukul Rohatgi, who told the court that Justice Nariman must recuse from the case.
In her petition, Sasikala also said she had been wrongly convicted. The Prevention of Corruption Act, she said, would not apply to her as she was not a government servant.
The hearing of the review petition - a procedure conducted in the judges' chamber and not open court - was to take place on Thursday.
For stay in the jail, Sasikala had requested for a series of privileges - including private television, home-cooked food and non-vegetarian meals -- which was turned down.
But a senior police officer of the jail, D Roopa, alleged that Sasikala was enjoying VIP facilities after bribing the officials. She even said her boss, Director General of Prisons HN Satyanarana Rao, was one of the beneficiaries. Days later, the officer was transferred to the traffic section and Mr Rao, who was to retire by the month-end, was asked to go on leave.