Jubilant supporters of the chief justice celebrated at the court |
Pakistan's Supreme Court has ruled that Chief Justice Iftikhar Chaudhry should be reinstated.
He was suspended in March by President Musharraf, after being accused of misusing his office for personal gain.
Supreme Court judges ruled by 10 to three to quash all charges against the chief justice and reinstate him, calling his suspension "illegal".
Mr Chaudhry has become the focus of opposition to the president, addressing protest rallies around the country.
Critics of the president say the suspension was an attempt to undermine the judiciary's independence in an election year.
The BBC's Dan Isaacs in Islamabad says jubilant supporters of the judge are celebrating victory on the steps of the Supreme Court.
Observers say the ruling will be a major blow to the president, who has faced mounting opposition to his rule and a wave of bombings around the country in recent days.
Accusations
Lawyers representing Mr Chaudhry completed the presentation of their case on Friday.
They demanded that he not only be reinstated as chief justice, but that all charges against him be dropped.
Judge Chaudhry is a staunch opponent of Gen Musharraf |
Mr Chaudhry had appealed against Gen Musharraf's decision to suspend him and have a judicial panel investigate him for the alleged abuse of office.
The court had to decide whether Gen Musharraf over-reached his powers and whether the charges against the chief judge should be pursued further.
Delivering the court's verdict, presiding judge Khalil-ur-Rehman Ramday said: "The reference [against Mr Chaudhry] has been set aside and the chief justice has been reinstated."
Mr Chaudhry's lawyer, Aitzaz Ahsan, told reporters: "He has been restored and it is a victory for the entire nation."
Government officials had alleged that several people had filed complaints with the president, accusing Mr Chaudhry of misusing his office and receiving favours. In particular, he is alleged to have procured a top police job for his son.
The government says the case has no political motive.
But critics say the government has not shown similar zeal in pursuing more serious charges - such as financial embezzlement and property fraud - against other top judges.
They accuse the president of plotting to remove an independent-minded judge to forestall legal challenges to his plan to ask parliament for another five-year term in office.
High stakes
Mr Chaudhry's suspension in March triggered mass protests.
The row is seen by some as Gen Musharraf's biggest challenge |
He has become a highly controversial figure in recent months as he has toured the country calling for an end to political interference in the judiciary.
Although he has not directly criticised Gen Musharraf, his campaign roadshow has definitely taken on the feel of a political campaign, Dan Isaacs says.
The legal issues are highly complex, our correspondent says, but what is at stake is fundamental - will Gen Musharraf be able to stay on as army chief as well as president, and will his re-election be decided by the current or next parliament?
Many people expect there to be a compromise allowing the chief justice to remain in office but barring him from making any decisions which concern Gen Musharraf's political future, our correspondent says.