Top leaders of the alliance met at Vajpayee's residence in the morning and decided to extend the boycott to the entire session.
Dr Singh on Wednesday said Lalu would not be asked to resign "for now".
Lt Governor Najeeb Jung on Thursday returned to Delhi government the file on removal of DCW chairperson Barkha Singh seeking reasons for the proposed action even as Chief Minister Arvind Kejriwal justified its stand saying these bodies should not be headed by politicians.
Arvind Kejriwal is understood to have finalised his team of ministers that includes his trusted associate Manish Sisodia and five others to be inducted into his ministry that will be sworn in later this week.
The state Congress, however, has not lent its voice to the Trinamool Congress' demand for resignation of the CPI (M) MPs for holding offices of profit in West Bengal.
Chatterjee had convened an all-party meeting last week at the end of which he had even suggested that a Presidential reference be made to the Supreme Court for opinion on its order.
He was admitted on Tuesday following a mild viral fever.