A bench of justices T S Thakur and V Gopala Gowda upheld the high court order saying that the prescribed procedures have not been followed in his appointment.
Terming the post as "constitutional", the court said it was not a political appointment and the government should have followed the due process while scrutinising over 80 applications and finalising the name for the post of the Chairperson of Uttar Pradesh Public Service Commission (UPPSC).
It had passed the order on a petition filed by advocate Satish Kumar Singh and several others.
It was alleged that Yadav's appointment was made after ignoring facts that he was named in cases under Section 307 of the Indian Penal Code (attempt to murder) and the Goonda Act registered in his native district of Agra.
Yadav, however, had submitted that he has been acquitted in the cases while the High Court made it clear that it was passing the order "without going into the merits of allegations of criminal antecedents of the respondent".
The high court had noted a number of improprieties in the
selection process, which included Yadav's bio-data being "sent to the state government through fax from an office of the Samajwadi Party".
Yadav, who took over in April, 2013, was selected from among 83 candidates who had submitted their bio-data before the state government for the post.
