Ruling CPN has asked Deputy Speaker Shiva Maya Tumbahangphe to resign.
The secretariat meeting at the prime minister's residence in Baluwatar on Saturday has taken the decision to that regard, CPN Spokesperson Narayan Kaji Shrestha told Setopati.
Tumbahangphe had turned down the request by CPN Chairmen KP Sharma Oli and Pushpa Kamal Dahal to resign on Friday.
The chairman duo had urged Tumbahangphe to pave the way for speaker election by resigning during the meeting at the prime minister's residence in Baluwatar Friday. But she asked for the reasons that disqualified her from being the next speaker.
"I was active in student politics and am still active. I have studied and taught. What are my weaknesses?" a source quoted her as asking the chairmen.
She also took exception to comments of CPN Spokesperson Narayan Kaji Shrestha and chief whip Dev Gurung that the election process has been stalled due to her refusal to resign.
The source revealed that she urged the chairmen to allow her to continue as deputy speaker if deemed incompetent for speaker.
"I will now move the process forward and do the work I need to in capacity of deputy speaker," the source added her as saying. "The election process will move forward on Sunday. You all resolve the political issues."
Ruling CPN cannot claim for the post of speaker if the election process starts without her resigning. The senior most lawmaker will then run the House if she resigns.
The ruling party will have to ask Deputy Speaker Shiva Maya Tumbahangphe, whose allegiance is now with CPN having won the last general election on a CPN-UML ticket, to resign to keep the post of speaker with the party as the Constitution prohibits appointment of speaker and deputy speaker from the same party.
Both the former CPN-UML and CPN (Maoist Center) factions are claiming for the post of speaker. Oli wishes to make former Constituent Assembly chairman Subas Chandra Nembang the speaker while Dahal has been insisting that Agni Sapkota from the Maoist faction should get the post.
The Maoist faction points that it should again get the post it had received during the power sharing before party unification.
Deputy Speaker Tumbahangphe's own claim for the post and refusal to resign if denied has compounded matters for the party.
The post of speaker is vacant after Krishna Bahadur Mahara resigned following rape allegation by a federal parliament secretariat staffer.