Nepal's prime minister left without a party

KATHMANDU, Nepal (CNN) -- Nepal's prime minister has suffered a major political blow as the country's independent Election Commission handed over control of the Nepali Congress party to his nemesis.

In a decision that was two months in the making, the EC struck down Sher Bahadur Deuba's claim that he is the legitimate leader of Nepal's oldest and largest political party.

The EC handed over control of the party to former prime minister Girija Prasad Koirala.

"The EC has recognized the Nepali Congress led by Girija Prasad Koirala as the real Nepali Congress. Prime Minister Deuba's claim has been rejected," EC secretary Shambhu Prasad Khanal said.

The decision leaves the prime minister without party just two months ahead of the mid-term general elections scheduled for November 13, throwing Deuba's plans into turmoil.

Deuba will continue to serve as a caretaker prime minister until a new government is formed after the elections.

State of emergency

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The dispute over party control began this past May as Deuba prepared to extend a state of emergency rule strongly opposed by Nepali Congress president Koirala.

He expelled Deuba from the Congress party after the emergency was extended despite party directives, prompting Deuba to call a general convention of party workers.

The convention, decried as a sham by Koirala, elected Deuba as its president.

Since then, the two executive committees of the Congress party had been battling for official recognition. The dispute had been before the EC since June.

There was no immediate comment from Deuba. His aides said the prime minister was consulting with his supporters before deciding any future action.

The EC has given Deuba some hope of joining upcoming elections as the leader of a political party. EC secretary Khanal said Tuesday that the EC will Deuba a week's time to register a political party.

It is also possible that Deuba could work out a compromise with Koirala and return to the mother party, or he could decide to contest the elections as an independent.

The Maoist rebellion, which planted the seed of the dispute, has been raging in Nepal since early 1996. The rebels are demanding a republican state.

According to human rights groups, more than 5,500 people have died in the insurgency.

Deuba clamped down emergency rule last November to deal with the rebels after dialogues failed. The emergency has already been extended twice, but lapsed after August 28.

The government is still mulling whether or not to re-impose emergency rule.