Counsels for Chief Minister Sheila Dikshit and Delhi BJP chief Vijender Gupta on Tuesday informed the Delhi High Court that their clients had failed to reach a settlement on a defamation suit as suggested by the Court.

The Chief Minister has filed a defamation suit against Mr. Gupta seeking a token damage of Re.1 for her alleged defamation by the latter.

Counsels for two urged the Court to hear and decide the matter on facts. Later, Justice Kailash Gambhir posted the suit on February 19, 2013, for final argument.

Justice Gambhir had in March suggested that the two to settle the matter amicably across the table.

The Chief Minister filed the suit last year seeking a decree for token damages of Re.1 arguing that Mr. Gupta had defamed her by putting up posters and hoardings all over the Capital accusing her of looting Rs.1,000 crore by permitting power distribution companies to hike tariffs in June 2010.

Mr. Gupta has sought dismissal of the suit arguing that there was no force in the allegation of the Chief Minister of being defamed by his campaign against allowing the power distribution companies to increase tariffs as he had targeted the Sheila Government, not her in his publicity materials.

Mr. Dikshit had filed the suit when Mr. Gupta failed to tender an apology to her for allegedly defaming her.

Court had suggested the two to settle a defamation case between themselves