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"We hereby direct CMC to examine all issues as may be raised on behalf of the states and make recommendations," a bench comprising justices D K Jain and J S Khehar said.
The bench said both the states shall comply with all the recommendations made by the CMC in letter and spirit.
The order was passed after Karnataka's counsel and senior advocate Fali Nariman said that the state would comply with the recommendations of the CMC.
Tamil Nadu's counsel C S Vaidyanathan had placed a copy of the October 26 letter addressed by Water Resource Secretary to states Chief Secretary expressing reservation on CMC going into question of shortfall of water in its October 31 meeting when the matter was sub-judice before the apex court.
However, during the hearing, counsel for both states agreed that CMC should go into all issues and other connected questions without prejudice including whether there is a shortfall of water to Tamil Nadu.
The bench said it would be open for the states to seek clarification later and posted the matter for hearing on November 26.
The court had last heard the matter on October 12 when it had dismissed
a petition filed by a group of farmers from Karnataka seeking stay of its September 29 order directing release of 9,000 cusecs of water to Tamil Nadu.
On October 11, the Cauvery River Authority (CRA) had passed the directive for release of 8.85 tmc on the basis of the findings of a central team that visited Karnataka and Tamil Nadu.
Earlier a CRA meeting held on September 19 had failed to produce a solution as both Karnataka and Tamil Nadu had rejected the Prime Minister's award of 9,000 cusecs of water to save the standing crops in the delta region.
Tamil Nadu had subsequently moved the apex court for a directive to Karnataka.
The CRA, headed by the Prime Minister, comprises chief ministers of Karnataka, Tamil Nadu, Puducherry and Kerala.
In its application, Tamil Nadu had said during the current irrigation year 2012-2013, though the south west monsoon is not vigorous in the Cauvery catchment of Karnataka, the state of Karnataka has received 21.9 TMCft of inflow in its four major reservoirs up to July 20.
"But it has not shared the water with Tamil Nadu.
Instead it started to build the storages in its 4 major reservoirs and letting water in the canals of Krishna Raja Sagar for irrigation with the result that the state of Tamil Nadu has been deprived of its due share of water as per the interim order of the Cauvery Water Disputes Tribunal," the application said.
