The appointment by the 8-week-old CPI(M)-led LDF government had triggered a row after Damodaran appeared for controversial lottery baron Santiago Martin and some quarry owners in different cases in the High Court recently.
Hitting out at the government, the opposition had also pointed that Damodaran, a former Advocate General, cannot appear for cases which went against the state's interest when he serves as the Legal Advisor of the Chief Minister.
Vijayan had defended Damodaran in the assembly when the issue was raised by the Opposition and said he had been appointed without any remuneration and there was no bar on him to taking up any cases.
In a bid to put a cap on the controversy, Damodaran today informed a division bench headed by Acting Chief Justice of the High Court Thothathil B Radhakrishnan his decision not to accept the post.
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The decision was made known while the court was hearing a petition filed by BJP state President, Kummanam Rajasekharan, challenging his appointment.
The government had to back off from the decision following people's protest, Sudheeran added.
In a statement here, Rajasekharan said government was forced to retract from its decision after government realised that the appointment was 'unconstitutional'.
"It is not enough that Damodaran informs the court that he is not assuming the charge. The government should withdraw the appointment order issued violating rules", Rajasekharan added.
The government had on June 9 appointed Damodaran as the Legal Advisor, with the rank of Principal Secretary.