Addressing the press at Prime Minister Pushpa Dahal's residence in Kathmandu, Nepal's Information Minister Krishna Bahadur Mahara said after a cabinet meeting that General Katawal has been sacked.
Other coalition parties, including the Unified Communist Party of Nepal (Maoist) protested the decision and boycotted the cabinet meeting.
On Apr 20, Nepal's Defense Minister Ram Bahadur Thapa had sought clarifications from General Katawal for defying a series of government orders.
A tension of sorts had erupted between the government and the Nepal Army after the latter was asked to stop the process of recruiting midway.
The Nepal Government had earlier asked General Katawal to clarify the need for recruiting 3010 soldiers, reinstatement of the eight retired brigadier generals sans the approval of the Defence Ministry and boycotting the National Games on Tuesday, Apr 28.
The UCPN-M emerged from the Constituent Assembly elections in Apr 2008 as the single largest party and led the formation of the first republic government in Aug 2008.