Present king Leishemba Sanajaoba sat in the protest as he presently stay in Manipur palace complex.
Sources said the government had decided to protect the palace complex as it was connected with the history of Manipur and a decision to this effect was taken during a cabinet meeting on Saturday.
Appealing to the residents around the palace complex, official sources said it was good for all the people of Manipur to protect the complex to show to the future generation about the historical past of Manipur.
A spokesman who organised sit-in protest against the cabinet decision said many people constructed pucca buildings around the palace complex on the land sold to them by former king Okendra Singh.
Official sources said the cabinet decision was a 'right one' to protect the historical past of Manipur and added that people should not object to it as it concerned the while state of Manipur.