Chandreshwar polled 14 votes against 7 by his rival Neelam Sareik, officials said adding one vote was declared invalid and one member did not vote.
The post of chairman fell vacant following the election of Aniruddh Singh to the state assembly from Kasumpti seat last month.
Shimla Deputy Commissioner Dinesh Malhotra administered the oath of office to the new chairman.
Prasad called on Chief Minister Virbhadra Singh soon after his election and sought his blessings and support.
