He was 88.
The leader is survived by his wife, two sons, and a daughter. He had a natural death, family members said.
Known for his honesty and uprightness, Nayyar had a long innings in public life spanning five decades before retiring from electoral politics in 1993.
Nayyar was elected to the state Assembly from Chamba in 1982 and retained his seat in 1985. He remained Education Minister between 1985 and 1990.
He held several positions in the Congress party and also served as president of DCC Chamba.
"His death is a great loss to the people of the state and the void created by it would be difficult to fill," the chief minister said, adding that besides being a politician of repute, Nayyar was known for his "simplicity and decision making power".
His contribution in the politics of the state cannot be forgotten, he added.
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