Due to internal strife within the Congress, the UML won the most seats in the mid-term elections for the House of Representatives held on 29 Kartik 2051, becoming the first party to win the most parliamentary seats. However, it was not able to secure the majority required to form a government.

Out of 205 constituencies, UML won 88, Congress 83, Rastriya Prajatantra Party 20, NEMKIPA 4, Sadbhavana Party 3 and Swatantra 7 seats. The possibility of UML forming a minority government was increasing.

With the preparations for forming the government, UML had proposed the then UML chairman Manmohan Adhikari as the leader of the parliamentary party. KP Sharma Oli had proposed him as the leader of the parliamentary party. Adhikari was supported by MPs Modnath Prasrit and Leela Shrestha (Subba) in Oli's proposal. All the MPs present unanimously supported the proposal to make 74-year-old Adhikari the leader of the parliamentary party.

After becoming the leader of the parliamentary party, Adhikari had presented a claim in his speech that his party should form the government as the largest party. He was elected as the leader of the parliamentary party to make him the prime minister.

Adhikari had declared that if the government was formed under the leadership of the UML, he would work as a servant and not as a ruler. Talking about the people voting for the UML and making it the largest party, he had said, ‘Because we are communists, we are not close to any country and far from anyone.’ He had made this statement when speculation was being made about how relations with India would expand. At that time, UML was being shouted at on the streets as a nationalist party opposing India and Congress as a pro-India and anti-nationalist party.

During the three and a half years of the government under the leadership of the Congress, the relationship between the main opposition party, UML, and Prime Minister Koirala was never good. At that time, the slogan that the UML constantly used was, ‘Talu khuile Girija Bharatbhithir Chhirija.’ There was a perception that being anti-India was the same as being nationalist. The message was that the UML was an anti-India party. Therefore, Adhikari must have said that as a communist, he would not be close and not far away. 

Adhikari had also expressed his commitment to have relations with all countries on the basis of equality.  Political analysts at the time had speculated that Adhikari had put forward this idea diplomatically to dispel doubts about whether the UML would be close to China and continue to oppose India as a communist.  He had expressed confidence that the international community would not reduce grants and assistance during the UML-led government.  The Congress itself had spread talk before the election that the communist government would not receive loans and grants from abroad.  Refuting that, Adhikari talked about increasing grants. 

After Adhikari was elected as the leader of the parliamentary party, the then UML General Secretary Madhav Kumar Nepal had said that everyone would reach a common consensus on national interest and foreign policy.  He had also informed that he had positive talks with Congress leaders about forming a government.  Even though the government was in the minority, the UML needed the agreement of other parties as well. That is why Nepal informed that talks were being held with all parties in the meeting.