The bill, moved by CPI(M) MLA Mohammad Yousuf Tarigami, was rejected at the introduction stage.
As per the rules of business of the assembly, Tarigami sought permission of the House to introduce the Bill which was denied by a voice vote, with the members of the ruling PDP-BJP combine, which enjoys nearly two-third majority, opposing it.
The bill, however, found support from opposition National Conference, Congress and independent MLA Sheikh Abdul Rashid.
After the assembly proceedings, Tarigami assailed the PDP, saying the defeat of the bill has exposed the ruling party's doublespeak.
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"If you go through the self rule document of the PDP, you will find that the party in its vision document states that it wants restoration of Sadr-i-Riyasat as was the case before the 6th Amendment of the state Constitution," he said.
"At least, National Conference in 2000 passed the autonomy resolution as part of its commitment to restoration of greater autonomy to Jammu and Kashmir. What PDP did today was betrayal of the people who have voted for it," he said.
The PDP's self rule document on the issue of Sadr-i-Riyasat reads: "Sixth Amendment of the Constitution of the State that undermines its original scheme of a comprehensive and accountable executive (inclusive of the Head of the State) a critical component of self rule, will have to be repealed. Prior to this amendment, the state legislature elected Sadar-e-Riyasat, the head of the State".