The Managing Director cannot be held "vicariously liable" for a criminal offence of a company unless there is evidence, he said.
The most important question is whether Ranjit Sinha should continue to head the CBI until he retires on 2 December, writes former CBI chief RK Raghavan.
The court passed the order after framing charges under the PMLA Act against Ammal, Kanimozhi, Raja and 16 others in the case.
Special CBI Judge OP Saini allowed the oral submissions of the accused and fixed the matter for October 9 for filing of replies of the accused.
Balwa had earlier filed an application in the court seeking its permission to examine himself as a witness in his defence.
The spokesperson vehemently denied any meetings had taken place between Sinha and the company officials at his residence to influence him in 2G case in any manner whatsoever.
Balwa, who has been chargesheeted in the case along with 18 others, including former Telecom Minister A Raja and DMK MP Kanimozhi, argued in the court that ED has made the case on the basis of "hearsay evidence"
Besides this, Raja has also sought summoning of SE Rajan, his former personal assistant, as a witness for the defence
Khaitan said there was a possibility that some of the prosecution witnesses had deposed against him during the trial under influence from rival firms, deposing before the court.
The 2G case accused also requested the court to take on record the written answers afresh.
During the recording of her statement, Kanimozhi claimed prosecution witnesses had deposed against her under CBI's pressure and although she has been a 20 percent shareholder in Kalaignar TV
The stage for the recording of evidence of Raja and 16 other accused, including DMK MP Kanimozhi, was set earlier when the court had supplied a draft questionnaire containing 1,718 questions running into 824 pages to the accused
Behura claimed that Vahanvati the then Solicitor General (SG) had also given false statement regarding the draft press release about issuance of letters of intent (LoIs) to eligible telecom firms.
Deposing before the court, Raja said that monitoring of 2G scam probe by the Supreme Court led the CBI to investigate the case in a "predetermined manner"
A bench headed by Justice HL Dattu passed the order after it was alleged that Rajeshwar Singh is being transferred to his parent cadre in Uttar Pradesh.
The court held that some questions may appear to be long but they pertain to a material fact and have been put together to make them "logical".
The apex court said it is "not appropriate at this stage" to recall its order of 23 November, 2011 by which the business tycoon was granted bail in the multi-crore scam.
Last month, the court concluded recording of prosecution evidence in a more high profile 2G spectrum case involving former telecom minister A Raja and 16 others.
After the defence concludes its evidence, perhaps by April, the trial will enter its last stage, when both sides will make their final arguments.