Davuluri, the 24-year-old first-ever Indian-American to win the Miss America pageant, was invited by the White House for its annual Easter Egg Roll Celebrations on April 21 when Patrick Farves, 18, rose at the end of a question and answer session and asked her if she would be his date at prom, the annual end of the year dance.
He gave Davuluri a plastic flower as she spoke to the students.
"Thought for days of what to say to @MichelleObama, she lead with "So I hear you got some kid suspended. #Priceless (sic)," Davuluri tweeted.
The school, however, did not take the prank lightly and suspended Farves for three days, saying the student had "deliberately" defied school administrators, who had requested him that he not ask Davuluri the question after they learned of the planned stunt.
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Farves later apologised, writing a letter to the district's assistant superintendent that he was sorry for the commotion.
In a message posted on the Miss America Organisation's Facebook Page, Davuluri said she has "reached out to the school in hopes that they will reconsider their decision" when she learnt of the disciplinary action taken against the student.
She said she was "flattered" by Farves's gesture but said "unfortunately" she would not be able to attend the prom with him due to her travel schedule.
Davuluri had replied "Maybe later" and Farves cheered as he walked back from the stage.
The celebrations were in support of Michelle Obama's 'Let's Move!' initiative focused on promoting health and wellness with the theme, 'Hop into Healthy, Swing into Shape'.