Thiruvananthapuram: Kerala High Court has cancelled the suspension of former managing director of the State Cooperative Bank for Agriculture and Rural Development, observing that the government action against the all-India service officer was “illegal”.

Suresh Kumar, a favourite of Chief Minister V S Achuthanandan, was suspended last year for criticising officials, alleging that they derailed the functioning of the Chief Minister’s office and hid crucial files from him. His tenure as the head of the special taskforce, entrusted with the demolition of illegal structures at the Munnar hill station, had won him both friends and foes. But the CPM official faction, ranged against the Chief Minister, nursed a grouse against him for being part of his kitchen cabinet.

In their order yesterday, Justices Kurian Joseph and C T Ravi Kumar said the suspension phase should be deemed as service period and he should be reinstated in service with all emoluments.

They observed that the state government had overstepped its powers by ordering the suspension of the Indian Administrative Service officer without the Federal Government permission. But the judges did not grant Kumar’s prayer to be reinstated as the head of the cooperative bank.

Two months back, the government revoked his suspension but did not give him a posting. Later, he was accommodated in the Official Language wing under the CM’s office.

Kumar contended before the High Court that the government action was illegal and challenged the Central Administrative Tribunal (CAT) order, rejecting his application against the suspension.

Kumar pointed out that as per Rule 3(1) of the All India Services (Discipline and Appeal) Rules 1969 if no disciplinary proceeding was initiated before the expiry of 90 days from the date of suspension, the suspension would be invalid.

The suspension order was issued on December 11, 2008 and 90 days expired on March 10 this year. But the suspension of the applicant was extended beyond 90 days without starting disciplinary proceedings, he said.

The government had no power to extend the period of suspension if it had not initiated disciplinary proceedings before the expiry of 90 days. Kerala government had not obtained the Federal permission before extending the suspension period.

Kumar said he was happy about the court decision. But this may not be the end of his travails because the Vigilance Directorate is looking into fresh complaints against him during his tenure as the head of the cooperative bank. the peninsula