Gowri Amma, who was expelled from CPI(M) 21 years ago, was to have merged the party she founded - Janathipathiya Samrakshana Samithi (JSS) on August 19 with the CPI(M).
96-year-old Gowri Amma's decision to merge JSS with the CPI(M) had not been taken kindly by a section in the party.
Dispute over the ownership of various properties of JSS also arose with party workers openly coming to blows on various occasions.
After a meeting of the party today, Gowri Amma met CPI(M) leader, Pinarayi Vijayan at her residence.
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"The August 19 merger meeting has been postponed. But the party will cooperate with CPI(M)," she said.
Party sources, however, said the merger had been called off due to internal strife in the party over property matters.
When asked by reporters if aligning with CPI(M) was a 'closed chapter', she declined to reply.
Vijayan also declined to talk to the media.
Gowri Amma, a prominent figure in the Communist movement in Kerala, had been expelled from CPI(M) in 1994 on charges of anti-party activities.