The House's attention to the propriety of recalling the services of Sehgal was drawn by opposition leader V S Achutnanandan and Chief Minister Oommen Chandy and Speaker G Kartihikeyan said they agreed with him.
Terming her a great patriot who made personal sacrifices for the nation, Chandy said Kerala was proud that she hailed from the state.
The Speaker said the departed leader was a courageous and inspiring presence in India's freedom struggle.
The members then observed a moment's silence as a mark of respect to Sehgal.
Meanwhile, a condolence meeting was held at her ancestral Anakkara village in Palakkad district last evening.
Cutting across political lines, a large number of people also called on her relatives at Vadakkathu Tharavad, the matriarchal home of the departed leader.