Kumar, who had resigned as Chief Minister in the wake of party's disastrous performance in Lok Sabha polls in May last year, was elected at a meeting attended by 97 of 111 JD(U) MLAs and 37 of the total 41 members of Legislative Council.
The meeting, called by party President Sharad Yadav, took place shortly after Manjhi's unsuccessful bid to have a Cabinet recommendation for dissolution of the Assembly.
Earlier, a last-ditch attempt was made for a patch up between Manjhi and the group led by Kumar but it failed.
At the Cabinet meeting convened by Manjhi just before the Legislature Party meeting, a proposal was mooted for dissolving the Assembly. It was supported by seven ministers besides Manjhi, while 21 pro-Nitish Kumar ministers opposed it, state Finance Minister Bijendra Yadav told reporters.
Kumar said Yadav will establish contact with Governor Kesrinath Tripathi to stake claim to form the government.
He said that majority was with him "and if needed, we will parade our majority numbers", apparently referring to support of RJD, Congress and CPI which takes his number well ahead of the majority mark in the 243-member Assembly.
Notice had been sent to 111 MLAs and 41 MLCs for attending the meeting convened by Yadav. As expected, Manjhi, some ministers and legislators supporting him stayed away from it.
Addressing JD(U) legislators, he said he had been forced to accept the challenge in view of "dirty" politics played by the BJP against his party.
Kumar said he would take the fight against the BJP to its logical conclusion in the Assembly polls due later this year.
"Now I have accepted the challenge and I will lead from the front and take the fight against the BJP which is playing 'dirty trick' against his party to a logical conclusion in Assembly poll later this year," he said.
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