Disapproving the blame game played by the two governments against each other, a Bench headed by Chief Justice Y K Sabbarwal said matters should have been sorted out at the highest governmental level.
The Bench said it was also unfortunate that a civil servant holding sensitive position was dragged into the controversy.
The UP government, seeking investigation into the incident of tapping Samajwadi Party leader Amar Singh's telephone by a private detective agency, filed the Petition.
The court posted the matter for further hearing on March 3. The Court also issued notices to Delhi government and Delhi police in the tapping case.