On 30 Chaitra 2054, Girija Prasad Koirala became Prime Minister with the support of the CPN (ML), which had split from the UML. In the mid-term elections of 2051, the UML, which had been in first place, was pushed to second in parliament due to the split. At that time, the Speaker was Ram Chandra Paudel from the Nepali Congress and the Deputy Speaker was Lila Subba Shrestha from the UML.

On 1 Ashwin 2055, during the process of passing the Local Self-Governance Bill in parliament, the conflict between the ruling and opposition parties in the House of Representatives escalated into vandalism. The main points of contention in the Local Self-Governance Act were whether local representatives would be allowed to change parties, and if they did, whether the party from which they were elected could take action to remove them from their position. The ruling party was in favor of allowing party switching, while the opposition UML was against it. This issue led to a situation of vandalism in the House of Representatives.

Speaker Paudel announced on 1 Ashwin 2055 that the bill had been passed in the House of Representatives as per the wishes of the ruling party. The main opposition UML, along with Rastriya Prajatantra Party and other parties, accused the Speaker of forcibly passing the Local Self-Governance Bill. The UML considered the Speaker's actions to be against parliamentary values and norms. Therefore, on 7 Ashwin 2055, it registered an impeachment motion in parliament against Speaker Paudel for not adhering to the code of conduct of his office. In response, the Congress and CPN (ML) registered a similar motion against Deputy Speaker Subba on the same day.

While processing the motions, on 24 Ashwin 2055, Deputy Speaker Subba conducted the meeting of the House of Representatives to discuss the motion against the Speaker. The plan was to discuss the motion against the Deputy Speaker after the discussion on the Speaker's motion. Deputy Speaker Subba had set the procedure and date for the discussion on the motion against the Speaker. Speaker Paudel sat on the ruling party's bench in the House of Representatives to listen to the discussion about himself.

While conducting the meeting, Deputy Speaker Subba suddenly announced her resignation. Her resignation created a crisis in parliament. The discussion on Speaker Paudel was also halted. The Deputy Speaker announced her resignation in disagreement with the procedure adopted by the Speaker in passing the Local Self-Governance Bill.

With the impeachment motion process against the Speaker underway and the Deputy Speaker having resigned, a parliamentary political crisis emerged. While presiding over the meeting, Deputy Speaker Subba expressed the view that Speaker Paudel should also resign. She stated that Paudel had violated the privileges of parliament and created an atmosphere of distrust in parliamentary proceedings.

While making her statement, she said, "I hereby announce my resignation from the post of Deputy Speaker, effective after this meeting." After she announced her resignation, the opposition welcomed it by banging on the tables. The Deputy Speaker adjourned the meeting for 30 minutes and submitted her resignation addressed to the Speaker through the Secretary General of Parliament. Due to the absence of a presiding officer, the meeting could not reconvene. Speaker Paudel posted a notice informing that the next meeting would be held the following day at 11 a.m.

In her resignation, the Deputy Speaker leveled serious allegations against the Speaker. She mentioned in her resignation letter that her trust was broken and she was shocked after listening to the "tape recording" of the bill's passage as played by the parliamentary secretariat.

As per the opposition's demand, the audio recording of whether the Self-Governance Bill had been passed in parliament was played. The recording was played by the parliamentary secretariat. After listening to the recording, she said she became extremely concerned that it might set a bad precedent and thus decided to resign. She said, "I believed that listening to and playing that tape, which became decisive evidence in the controversial process of passing the Local Self-Governance Bill, would free us all from serious allegations against parliamentary values and norms, but after hearing that recording, my trust was broken."

She stated that, as she was still in the post of Deputy Speaker, it would not be appropriate to comment on the bill. She urged for self-reflection and proper conclusions on whether they had fulfilled their responsibilities while passing the bill. Expressing dissatisfaction with the motion brought against her by the ruling party, she said, "There is no basis or reason for the motion against me. It is unjustified." The ruling party had also registered a motion in the parliamentary secretariat against her for not adhering to the code of conduct of her office.

After this, it was decided that the issue of the Speaker would be discussed only after electing a new Deputy Speaker. According to Article 51, Sub-Article (5) of the Constitution of Nepal 2047, the Deputy Speaker was required to preside over discussions on whether the Speaker had failed to perform his duties. Therefore, it was informed that the motion against the Speaker could not be advanced.

Accusations and Counter-accusations Between the Ruling and Opposition Parties

After the Deputy Speaker resigned, accusations and counter-accusations regarding morality and immorality arose between the ruling and opposition parties. The opposition interpreted the Deputy Speaker's resignation as an act of moral conduct. However, the ruling party called it immoral. Chief Whip of the ruling Nepali Congress, Shivraj Joshi, said that the Deputy Speaker's resignation, instead of advancing the meeting she herself had called, was not in accordance with the conduct required by her position.

He objected to the Deputy Speaker, while sitting in the chair, speaking against the Speaker for playing the audio-visual recording of the 1 Ashwin parliamentary proceedings in a closed room. The Congress accused the Deputy Speaker not only of failing to act according to her position but also of disregarding morality.

The opposition, including the UML, said that the Deputy Speaker had demonstrated high moral standards by resigning. UML General Secretary Madhav Kumar Nepal, Rastriya Prajatantra Party Chairman Surya Bahadur Thapa, Nepal Sadbhavana Party's Gajendra Narayan Singh, and CPN (Masal) MP Navaraj Subedi, in a joint statement, demanded the Speaker's resignation. The statement said that the Deputy Speaker had shown high morality and that the Speaker should resign to resolve the crisis. They stated that after listening to the tape of the bill's passage, it was clear that the Speaker had blatantly violated parliamentary values and norms.

Focusing on the impeachment motion against the Speaker, the Deputy Speaker's resignation, and the announcement of the election of a new Deputy Speaker, Kantipur daily published a news report on 25 Ashwin 2055 under the headline "Deputy Speaker Shrestha Resigns Suddenly, Discussion on Impeachment Against Speaker Obstructed."

On the same day, Kantipur also published under the headline "Deputy Speaker's Resignation: Immoral for the Ruling Party, Moral for the Opposition." The demand for the right to change parties in the bill was particularly linked to the interests of the ruling CPN (ML) and Rastriya Prajatantra Party (Chand), which had split from RPP. The reason was that, as in the center, if party splits were allowed at the district level, representatives were expected to side with the CPN (ML). If party switching was not allowed, UML representatives would be forced to stay with the UML out of fear of losing their positions due to disciplinary action.