Kathmandu:
Caught in row over dismissal of Nepal's army chief, country's Prime Minister Pushpa Kamal Dahal, also known as Prachanda, has resigned citing obstacle in government functioning as the main reason. Prachanda announced the decision in a televised address to the nation.
In his speech, Prachanda said, "The decision taken by the government in consultation and approval of all political parties has been overturned by the President. This is an unconstitutional decision and has led to a national crisis."
He also said that the government wants to resolve the crisis in a peaceful manner.
Meanwhile, security forces in Nepal were on high alert on Monday to avert street clashes in Capital Kathmandu amid a government power struggle over the Prime Minister's attempts to fire the army chief.
Prachanda, from the ruling Maoists, unleashed the crisis on Sunday by trying to fire the army chief because of his moves to block the enlistment into the military of former Maoist rebels.
The removal of the army chief sparked mass protests and was later rejected by the country's first democratically elected president, Ram Baran Yadav who belongs to the main opposition Nepali Congress Party.
Nepal's Maoists have fought a bloody, 10-year war against the government before joining the political mainstream in 2006 and winning the most votes during elections last year after the Himalayan country abolished its centuries-old monarchy.
However, many of the former Maoist fighters remain restricted to UN-monitored barracks under a peace accord.
Earlier on Monday, protesters took to the street of Katmandu to show their condemnation of the prime minister's actions, burning tyres and throwing up barricades.
A few hours later, thousands of Maoist supporters rallied in the Capital to denounce the president's action.
(With NDTV inputs)