In a statement, Nath said he has forgiven the teacher.
Tiwari had allegedly referred to Nath as a "daku" (dacoit) during a meeting at the school. He was suspended by collector Chhavi Bharadwaj after a video where he is purportedly seen making the comment appeared on social media.
Nath said in a statement Saturday that after he learnt about the incident, he directed the officials to revoke Tiwari's suspension.
"I have always been in favour of freedom of expression....the action against him might be correct according to the rules but I am personally forgiving him," the chief minister said.
"I have directed the district administration to revoke the suspension....He (teacher) should decide for himself whether he used right words for a democratically-elected chief minister," Nath added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)