During arguments on Tuesday, counsel for Chandy, a businessman -turned-politician representing the NCP in the cabinet, pressed for expunging any reference to the minister in the report.
Meanwhile, Chandy is at Kochi and is likely to reach the state capital late in the night to take part in the weekly cabinet meeting held every Wednesday.
He may file a petition in the court, seeking to cancel the high court order.
Mr. Vijayan has received flak for his alleged kid-glove treatment of Chandy despite Alappuzha district collector submitting a report to the government confirming that the minister illegally reclaimed revenue land to construct an approach road and a parking lot for the resort owned by him.
"Never before has the court made an observation that the cabinet has lost its collective responsibility".
Chandy belongs to the Nationalist Congress Party (NCP), which is a constituent of the ruling Left Democratic Front (LDF) government in Kerala.
Following the HC verdict, the chief minister finally ended his silence on the Chandy issue, telling mediapersons Tuesday that he would take the right decision on the issue at an appropriate time.
The collector should give a hearing to the minister within 15 days, "Justice Raveendran had said".
State BJP general secretary M.T. Ramesh said it's a shame that the court has come down heavily and questioned the very essence of Vijayan's governance.
NCP state president T P Peethambaran Master, however, did not disclose to the media the decisions arrived at the executive.
Mr Vijayan said the LDF had earlier chose to entrust him to take an appropriate decision on the matter after looking into all aspects.
Chandy had petitioned the HC seeking to quash the collector's report, which reportedly confirms the veracity of charges of encroachment on land and backwaters for the construction of a resort owned by him. Despite the state Congress' attempts to stall Tankha through AICC intervention, he appeared for Chandy on Tuesday, after facing a protest by Youth Congress workers.
Speaking to the media later, Tankha said they are studying the verdict and will decide on what needs to be done.