Aam Aadmi Party, which had approached the apex court seeking dissolution of the House, reacted cautiously, saying it accepted the stand taken by the court.

"We welcome the observation by the Supreme Court. The party leadership will take an appropriate decision at an appropriate time if BJP is invited to form government," Delhi BJP President Satish Upadhyay said refusing to comment further.

AAP leader Ashutosh said, "The court noted that it's a positive step by the LG. But this positive step should have been taken long back."

A five-judge Constitution Bench headed by Chief Justice H L Dattu earlier expressed satisfaction over Jung's recent moves to explore the possibility of government formation in Delhi and said that he should be given more time as "there could be a minority government with outside support".

Congress, however, maintained that the Assembly should be dissolved immediately to pave the way for holding of fresh polls.

"We demand immediate dissolution of the Assembly. Elections in Delhi should be held immediately as no party is in a position to form government. The LG should have taken the initiative long back," DPCC Chief Spokesperson Mukesh Sharma said.

The Lt Governor had yesterday decided to kick off consultations with BJP, AAP and Congress in the next few days to install an elected government in the capital or to dissolve the Assembly to pave way for elections early next year.

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