A former teacher accused of stabbing the school principal may face another charge after prosecutors rejected a proposed plea deal.
Kim Ramchen, 38, of Mulgrave, is accused of stabbing Keysborough Secondary School principal Aaron Sykes last December after his contract wasn't renewed.
Police allege Ramchen, a married father of one, twice attacked Mr Sykes with separate knives and was only stopped by the bravery of assistant principal Matt Sloan.
On Wednesday, Ramchen appeared in the Melbourne Magistrates' Court via video link from Ravenhall Correctional Centre where he hoped to be released from following the hearing.
Instead, Ramchen is staring down the barrel of another undisclosed charge as prosecutors continue to investigate him.
The court heard Ramchen’s legal team had prepared the matter for a plea hearing after receiving a psychiatric report on April 15 confirming he was fit to provide instructions.
His barrister Amelia Beech told the court that Ramchen instructed lawyers to set the matter down for a plea of guilty as soon as possible, noting he had already spent about five months in custody - his first time in prison - under difficult conditions.
'The day after this matter was last in court, an offer was made to the prosecution in writing on an in principle basis. That was then confirmed the next day, which was the April 17,' she said.
Kim Ramchen hoped to walk free from jail on a plea deal
'My instructors have then followed up the prosecution between April 17 and yesterday and received no response until 2.30pm yesterday.
'It was only at 2.30 yesterday that the offer that was made was rejected. And can I indicate that the offer was a very sensible offer based on the evidence.'
The court heard Ramchen's legal team then received a counter offer to which it responded to with yet another counter offer.
'We were told this morning that more time was required to consider that,' Ms Beech said.
The court heard the matter had been delayed due to the police informant going on leave.
The prosecution was also hoping to gather more information on the mental health of Ramchen's alleged victim.
Crown prosecutor JJ Jassar said prosecutors were now exploring a possible new or upgraded charge related to the seriousness of the harm suffered by Mr Sykes.
The court heard the principal had been off work since the incident and is now on WorkCover.
Ramchen is accused of stabbing Keysborough Secondary School principal Aaron Sykes
Keysborough Secondary School went into lockdown after the alleged attack
Prosecutors are seeking further evidence, including psychological material, to determine whether the mental harm sustained by the principal amounted to 'injury' or 'serious injury'.
They are also consulting Mr Sykes directly now that the informant has returned from holidays.
Ms Beech expressed frustration at the delay, criticising the prosecution for a lack of communication over a two-week period despite repeated follow-ups.
She claimed the defence only learned late on Tuesday afternoon that the plea would not proceed and that additional evidence was being gathered.
The defence highlighted Ramchen’s complex mental health history and 'vulnerabilities', arguing the lack of timely updates was particularly unfair while he remained in custody.
Ms Beech indicated she may make a fresh application for bail at the next hearing if prosecutors refused to make a deal.
The matter will return to court next week.