SIT counsel Prashant Desai told this orally before the division bench, headed by justice Ravi R Tripathi.
All 31 convicts have appealed against the sentence but her petition was taken up on priority.
Maya Kodnani and 29 others appealed challenging their conviction in the riots case by a special trial court.
The High Court last year granted bail to Kodnani on grounds of her medical condition as well as merit of the case.
Chhabda has claimed in his petition that there are variations in the witnesses’ statements against him.
On Friday, a division bench heard the argument and posted the matter for further hearing on Monday.
The words ‘conviction and’ added in fourth line at paragraph No. 19 of the order dated 30.7.2014 are deleted.
In November 2013, Kodnani was granted bail on medical ground after which the Gujarat High Court rejected her plea to extend it.
The three-time legislator was also the first woman to be convicted in a post-Godhra riots case.
Sources said that she will be shifted to a private hospital and is likely to move to Mumbai for treatment.
Gujarat HC rejects SIT petition seeking stay on bail order granted to former Gujarat minister Maya Kodnani.
The court granted the bail and directed her release from Sabarmati Central jail where she is lodged.
Court refused to believe that Kodnani distributed swords to the rioters.
Kodnani moved the bail application even as her petition challenging the the judgment has been pending before the Gujarat HC.
The three-time legislator is the first woman to be convicted in a post-Godhra riots case.