Chennai, Feb 16 (IANS): E. Palaniswami, a loyalist of the now-jailed AIADMK General Secretary V.K. Sasikala, will on Thursday evening take oath as Tamil Nadu's new Chief Minister.

Governor C. Vidyasagar Rao invited Palaniswami, 64, earlier elected by AIADMK MLAs backing Sasikala as their legislature party leader, to form a ministry "at the earliest" and win a trust vote within 15 days.

The move came a day after Palaniswami met the Governor and submitted a list of legislators backing him.

The Governor's invitation set off celebrations in the Sasikala camp even as outgoing acting Chief Minister O. Panneerselvam pledged to continue his fight against "one family" taking over the AIADMK.

Panneerselvam said people were angry that a new government was being formed with the support of legislators who, he said, were held for days in captivity at a resort near here.

Minister for Milk and Dairy Development K.T. Rajenthra Bhalaji said the Governor had saved democracy by inviting Palaniswami to form the government. He said the legislators would soon vacate the resort.

Palaniswami aides said overnight that he had the backing of 124 of the 135 AIADMK MLAs, all holed up at the resort.

The Governor's invite was a clear sign that Panneerselvam had lost the numbers battle and that he had been unable to woo the majority of party MLAs to his side despite being the Chief Minister.

Thursday's celebrations by Palaniswami and the MLAs supporting him came after a day of gloom when Sasikala returned to the Bengaluru Central Jail after being held guilty of corruption by the Supreme Court.

Also jailed with her were her relatives Elavarsi and V.N. Sudhakaran. Sasikala, who had wished to become the Chief Minister, is now barred from contesting elections for 10 years.

Palaniswami, the Minister of Public Works, Highways and Minor Ports in the outgoing government, AIADMK Deputy General Secretary T.T.V. Dinakaran and other leaders discussed government formation at the Poes Garden residence of the late Chief Minister J. Jayalalithaa.

An emboldened AIADMK owing allegiance to Sasikala made it clear it will never embrace Panneerselvam. 

Barring Panneerselvam and School Education Minister K. Pandiarajan, all other MLAs in "the rival camp are welcome to join us", Handloom and Textiles Minister O.S. Manian told the media. 

Panneerselvam revolted against Sasikala on February 7, alleging he was forced to resign as Chief Minister to pave way for her to occupy the post.