Kumar, considered close to Singh, was appointed after the Congress came to power in the state last March.
The post of chief principal secretary was specially created for the retired IAS officer.
"The appointment (of Suresh Kumar) has been set aside by Justice Rajan Gupta of the high court," said advocate H S Brar, counsel for petitioner Ramandeep Singh.
Singh, a Mohali resident, had moved the high court last year, claiming that the appointment of Kumar was against the constitutional scheme and accepted norms.
"This is a cadre post and this post cannot be given to a non-cadre person," said Brar.
The petition said the tenure of Kumar, who had retired from service, had been made co-terminus with that of the government.
"He has been delegated the powers to oversee functioning of principal secretary to the chief minister which is a cadre post. Thus, a public office, has been usurped by a retired IAS officer. This apart, there is no provision in the rules for bestowing rank of a cabinet secretary on a retired officer," according to the petition.
Kumar had also served as principal secretary to the chief minister during Amarinder Singh's previous tenure of 2002- 2007.
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