The Supreme court has stayed Gauhati High court verdict holding setting up of CBI unconstitutional. The Apex court stayed the operation of the High Court's wednesday order after it was challenged by the centre today.

The two bench comprising Chief Justice of India P. Sathasivam and Justice Ranjana Desai observed that the judgement of the High court has to be stayed as the accused in two sensational cases have sought stay of the trial. They said they are also concerned with all other CBI cases.

The Apex court rejected the preliminary objection that Department of Personnel and Training is not authorised to file appeal in the matter. The bench said they will consider and go through the appeal filed by the Centre. The court also issued notice to the petitioner on whose plea the High Court had passed the judgement and posted the matter for hearing on 6th of next month.

Attorney General G. E. Vahanvati earlier told the court that the High Court's reasoning that DSPE Act not applicable to CBI is a twisted logic.

The High court in its verdict had said that the formation of Central Bureau of Investigation is invalid as it was constituted through a government resolution. The court observed that an investigation agency can not be formed without legislation and therefore, the CBI cannot be considered as an investigation agency.

The bench comprising Justice Iqbal Ahamad Ansari and Indira Shah was hearing a plea filed by a BSNL employee, questioning the existence of the CBI after the investigation agency filed a case against the employee in 2001.