A judge had last week observed the the Minister had misused her office to appoint a member to the state Commission for Protection of Child Rights.
Challenging this, Ms Shailaja approached the division bench, which came down heavily on her and asked her as to how a person, having criminal cases against him, was appointed member of the child rights panel.
The court said she cannot wash her hands of the appointment and posted the case for hearing on Thursday.
Meanwhile, an indefinite protest, demanding sacking of Ms Shailaja, by five legislators of the Congress-led opposition in the state assembly entered its third day today.
While the five legislators have spent two nights in the foyer of the House since Monday, the opposition was on Wednesday, too, in a protest mode and many legislators walked out of the House and sat along with the five.
Later, Leader of Opposition Ramesh Chennithala raised a fresh allegation against Ms Shailaja, saying she had flouted rules and posted a person as Managing Director of the state-run Kerala Health Research and Welfare Society without him even applying for the post. He showed documents to the media in support of his claims.
Ms Shailaja, however, has ruled out her resignation.