After the de facto merger on 1 November 1954 and before the legal integration with the Indian Union on 16 August 1962, general elections were held in 1955 and 1959.

In January 1955, The Indian union government renamed the French settlements in India as State of Pondicherry by passing an order.

First instance of serious infighting arouse during April 1956 which continued for four months and ended after election of Kamisetty Parasuram as the new speaker of the assembly.

Thus, without support of Reddiar's faction the Goubert's government could not survive as it falls below the halfway mark of 20 in a house of 39.

In April, the dissident group moved away from Congress and voted along People's Front (i.e. the opposition party).

This rift got deepened when the dissidents joined the Communist-backed People's Front to elect the Assembly's office bearers (i.e. ministers).

The Congress president had suggested Rangaswami and another dissident in his group, Arul Raj that the disciplinary action taken against them shall be withdrawn, provided some compromise is brought between the two faction to bring back unity.

[citation needed] The government led by Congress was not stable as the ruling party was ridden with personal strifes and factions.