During the hearing, the division bench headed by Justice Gopalagowda directed the varsities to file their replies on Wednesday.
On Monday, Advocate General Ashok Haranahalli had submitted that the two deemed Universities, the Yenopoya University and Nitte University, had themselves given an undertaking that they would surrender 25 per cent of the seats to Government in both PG and UG courses.
He had also submitted that under the UGC Act, deemed universities are supposed to accept the state government policy regarding admissions, but the varsities had denied admission through the Karnataka Examinations Authority (KEA).