The court had already framed notice against Mr. Kejriwal in the case.
Kejriwal, who faces a multitude of civil and criminal defamation cases, has been on an apology spree lately.
Additional Chief Metropolitan Magistrate Samar Vishal closed the case after the Chief Minister compromised the case with Mr Gadkari by tendering an unconditional apology to him.
Reacting to the apologies by Mr. Kejriwal, Deputy Chief Minister Manish Sisodia said, "We are here to work for the public". They've apologised for the same today. "We have not spared time for court, we have spared time for us so that we could fight for people", Sisodia told reporters on the premises of Delhi Assembly.
Meanwhile Delhi CM Kejriwal and Union minister Nitin Gadkari, both have filed a joint application seeking withdrawal of defamation case on Monday from Delhi's Patiala House Court. on Monday. The application comes after Kejriwal submitted a letter regretting making defamatory remarks against Gadkari. On a previous occasion, the court sked the two leaders to "bury the hatchet" and find an amicable solution but Kejriwal had refused to retract his statement, saying he had documents to back him up.
Apart from Gadkari and Sibal, Kejriwal also apologized to former minister in the Punjab government, Bikram Singh Majithia.
The Delhi chief minister's apology to Majithia created a rift within the party. The move had taken everyone by surprise, especially the AAP's Punjab unit. Mr Bhadana had been alleged corrupt by the AAP leader in 2014.
The Akali Dal leader had filed a a defamation suit against Kejriwal in 2016 for the comment. "Kejriwal has so many cases around the country that he is not able to dedicate enough time to Delhi". The decision to amicably sort out all such legal cases is a strategy as devised by the legal team of the party.
Earlier in the day, the AAP supremo apologised to Union Minister Nitin Gadkari, as per media reports.