The Public Interest Litigation was filed by rebel RJD MLA Samrat Chaudhary.
The petitioner's lawyer S P K Manglam said that as per rule 21 of the RJD Constitution anyone convicted in a corruption case would lose primary membership of the party.
On that account, Prasad who was convicted by a Ranchi court in a fodder scam case was not eligible to hold the party president's post and distribution of symbols to candidates was illegal, he said.
Reacting to it, Prasad did not give much credence to the PIL against him.
"I am the party boss and as president of RJD have freedom to take a decision in the party and a court cannot not intervene in this," he told reporters.
Samrat Chaudhary had also approached the Election Commission on the same issue.