Forty sit-in demonstrators arrested Saturday night on the steps of the Federal Building walked out of Boston Municipal Court yesterday morning when Chief Justice Eiijah Adlow refused to issue complaints against them.

Police had sought warrants charging the group with obstructing foot passage on a public way. The 40 were among 100 demonstrators ejected from the Federal Building after a 26-hour sit-in protesting Federal inaction in Alabama.

After conferring with five lawyers for the demonstrators, Adlow issued a statement saying. "I don't believe the public interest would be served in any way by granting these complaints. There is an element of exhibitionism in all of this and I do not want to give them (the demonstrators) another stage."

One of the attorneys. Edwin C. Hamnda, commented that "the original charges wouldn't have stood up in court." He said that the law exempts peaceful demonstrators from the charge of public obstruction.