The Congress concluded its session at Gaya on December 31, 1922, and the All India Congress Committee met next day , Jan 1, 1923. Before the business commenced, C.R.Das announced his resignation of the office of Congress President, and made a statement in explanation or or justification of his action. He said that there were at least two schools of thought with fundamental differences,.He could not associate himself with most of the resolutions passed in the last session of the Congress. .....He, therefore, wnted to work with those who believe in the programme as he did. Shortly after this, pro-councilors issued a manifesto forming and constituting themselves into a party within the Congress , called the Congress Khilafat Swaraj Party, which later converted to Swaraj Party. They would follow the same principle of Non-Violent and Non-Cooperation as their principles of action. C.R.Das became the elected leader of the Party, Motilal Nehru as one of the Secretaries, and almost all the prominent leaders more than 100, such as Hkim Ajmal Khan, V.J.Patel, N.C.Kelkar, Satymurti and Jayakar, joined the new party.
The leaders of the Swaraj Party showed great activity in organising the new party. They conducted a vigorous propaganda all over the country. Nehru in Upper India, Patel in bombay, and Das in Bengal, C.P. and South India. After this preliminary propagandas all over the India they summoned a Conference in Allahabad in March 1923, and drew up the constitution of the party and the plan of its campaign.
After many attempts Maulana Abul kalam Azad succeeded in a compromising formula between the two parties in April 30 and the propaganda to be suspended by both the parties. Their normal functioning would remain as it was.But the Compromise did not satisfy the extremities.
Any way the no changers was gradually losing their hold over the country.
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