A single bench of Justice Puroshottam Bhandari asked the government to put on hold the cabinet decision of September 18 to sack Khadka.
The apex court has also asked the government to furnish clarification on its decision.
With this, the government through the office of attorney general will submit a written clarification to the SC after which a joint bench of SC will further hold deliberations on issuing another interim order in Khadka’s case.
The government had sacked NOC chief Khadka from the post of managing director after five parliamentary committees and the ministry of supplies during their investigations had found Khadka’s involvement in irregularities while buying land plots in four districts for building oil storage facilities.
Khadka is accused of misappropriating around Rs800mn while buying land plots worth Rs1.61bn in four places: Bhairahawa, Chitwan, Sarlahi and Jhapa.
Khadka was appointed NOC’s managing director in January 2015 by then Sushil Koirala-led government.