Dhavan made this announcement in a Facebook post published early Tuesday morning.
He wrote: "Just been sacked from the Babri case by advocate-on-record Ejaz Maqbool, who was representing the Jamiat. Have sent formal letter accepting the sacking without demur. No longer involved in the review of the case."
Dhavan had vehemently argued the case for the Muslim side before a five-judge bench headed by then Chief Justice Ranjan Gogoi. He had argued for more than two weeks in the 40 day hearing of the matter.
During the course of the arguments, Dhavan had replied to the probing queries from the bench.
The petition has been filed by Maulana Syed Ashhad Madani, President, Jamiat Ulama-i-Hind. Muslim parties have put out a volley of questions in the review petition challenging the November 9 judgement in the Ayodhya title dispute.
Elaborating on the reason for his removal from the case, Dhavan said: "I have been informed that Mr Madani has indicated that I was removed from the case because I was unwell."
He has referred Madani's reason as "total nonsense. He has a right to instruct his lawyer Maqbool to sack me, which he did on instructions. But the reason being floated is malicious and untrue", said Dhavan in the second post on the social media platform.
The review petition said the apex court has erred on 14 key points while arriving at a judgment in favour of Hindu parties. "By virtue of the impugned judgment, the Supreme Court has effectively granted a mandamus to destroy the Babri Masjid and to construct a temple of Lord Ram in the said place", said the review petition emphasising that peace without justice is not possible.
( With inputs from IANS )