Its a non working choke (seized cable). Is it in the wrong place since was fitted like that when i bought the bike?
Okay, it may also seize in original position
Yes.
Proper location is to the upper right end of the engine-frame bracket on the left side of the bike.
By "proper" I assume you don't mean "well designed" ?
It really doesn't matter that much, as choke is only for cold starts, but personally I don't fancy the location of the choke. Always envied those with a pretty little handle on left side of bar...