The criminal and civil defamation proceedings were initiated by Union Finance Minister Arun Jaitley against the Aam Aadmi Party (AAP) National Convenor Kejriwal over allegations of wrongdoings in the Delhi & District Cricket Association (DDCA) when Jaitley was at the helm of the state cricketing body.
Kejriwal in his plea contended that Jaitley has also filed a civil suit in the Delhi High Court.
Welcoming the decision, Delhi Bharatiya Janata Party (BJP) unit chief Satish Upadhyay said: "The clear order of the court is a legal slap on the politics of baseless allegations practised by Kejriwal."
Upadhyay said: "The Supreme Court's decision is a warning for the likes of Kejriwal who use baseless allegations for political blackmail."