Justice Quazi Reza-ul Hoque and Justice Mohammad Ullah passed the order after a writ petition hearing on Monday.
The authorities have been asked to implement the court’s decision in 90 days.
Khagrachhari residents Badiuzzaman Sagar and Helal Uddin filed the writ petition on Sunday.
The Chakma king who died in Pakistan in 2012 was accused of organising war crimes in Rangamati during the 1971 war.
“Tridiv Roy had colluded with the Pakistani army in 1971. He was a prominent anti-liberation figure in the Chittagong Hill Tracts, especially in Khagrachhari,” said Sharif Ahmed, the lawyer who represented the petitioners.
“He fled Bangladesh and went to Pakistan just after the war ended. He had been Pakistan’s envoy to Argentina and later enjoyed the status of a full minister.”
In Khagrachhari, there are schools, roads and areas named after the man: Tridivnagar, Tridivnagar Road and Tridivnagar High School.