The decision was conveyed to the court by Advocate General R Muthukumarasamy.
The Advocate General submitted that government would issue a proper advertisement inviting applications for the post.
He told the court that a government order recalling the appointment would be issued within seven days.
Recording the submission, the First Bench, comprising Chief Justice Sanjay Kishan Kaul and Justice M Sundar, said "We take the aforesaid statement on record. We appreciate the stand taken by the state government."
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The Madras High Court had earlier observed that the "process has not been followed" in making the appointment and warned the state government of judicial intervention on the issue.
The bench also recorded the submission of petitioner Narayanan that while going through the fresh process the government may keep in mind a notification issued by the Central government prescribing the process to be followed. The notification followed certain directions passed by the Supreme Court on February 25, 2014.
The bench said as a result Child Welfare Committees and Juvenile Justice Boards are not functioning at district level. "As pointed out by the petitioner, this needs some urgent attention."
The bench, which recorded the assurance of the Advocate General that urgent steps would be taken in this regard, posted the matter for compliance to March 10.