Less than a fortnight before parliamentary elections are due, Chief Commissioner Fuwad Thowfeek and his deputy Ahmed Fayaz were dismissed for "disobeying and challenging" orders issued by the court in its role as "guardian of the constitution".
Thowfeek was given a six-month prison sentence, which was suspended for three years, in a decision read out in court late on Sunday.
The ruling has reopened the controversy over last year's election on the honeymoon islands, when judges annulled the results of a first round won by former president Mohamed Nasheed, and then cancelled two other polls at the last minute.
"We think this (court) decision is completely ridiculous," MDP youth wing leader Shauna Aminath told AFP. "Our candidates and party seniors will meet today or tomorrow to decide what we are going to do about the elections."
More From This Section
Nasheed eventually lost last year's presidential elections to the half-brother of Maumoon Abdul Gayoom, the former strongman who ruled the Indian Ocean archipelago for 30 years. Abdulla Yameen won the November 16 presidential vote.
Gayoom appointed most of the current judiciary before being defeated by Nasheed in the islands' first democratic polls in 2008 and foreign diplomats regarded the delays last year as a politically-motivated ploy to prevent Nasheed's return to power.
Thowfeek said he doubted whether the March 22 elections could take place as scheduled given the removal of the main organisers.
The judgement said the elections chief had been "publicly critical of the Supreme Court verdict issued to ensure the election is held in a peaceful environment" last year.