A split in the Samata Party was averted on Friday when Bihar unit president Raghunath Jha resigned, as demanded by dissident members of Parliament owing allegiance to Railway Minister Nitish Kumar.

Jha's resignation was accepted at a meeting of the Samata parliamentary party in New Delhi.

The meeting witnessed high drama when party president and Defence Minister George Fernandes offered to resign and pass over the mantle to Kumar, sources said.

But the MPs rejected the offer and reiterated their loyalty to Fernandes. The Samata Party has 12 members in the Lok Sabha and two in the Rajya Sabha.

Fernandes then told the MPs that Jha had submitted his resignation on Thursday night before leaving for abroad.

After the meeting the rebel MPs said they were happy that their demand had been accepted and added that the proposed state executive meeting at Patna on January 19, where the split was to be formalised, will not be held.

Basistha Narain Singh was appointed interim convenor of a committee to oversee the organisational elections in Bihar due in another two months. The committee headed by Jha will cease to exist.

"Our main differences have been resolved. Whatever little bit remains, we hope to iron them out amicably," Prabhunath Singh, a member of the pro-Nitish camp, said.

The rebels, mostly with socialist background, were up in arms against Jha, a confidant of Fernandes, and were sore over the manner in which the party was functioning. They were particularly annoyed over its apparent tilt towards the Bharatiya Janata Party.

Though they were targeting Jha, the genesis of their grouse was in the 'marginalisation' of Kumar. The latest provocation was the National Democratic Alliance meeting held at Patna on January 2 where Kumar was not invited.

Sources said this issue figured prominently in Friday s meeting and it was explained that there was no intention to ignore Kumar.