In the 1937 election KPP secured third largest position in Bengal, Congress stood first and muslim got second position. As Congress was unwilling to form a coaltion Govt. KPP and Muslim League with some other groups and persons, formed the coalition Govt. in Bengal in 1937,when Fazlul Huq became the Chief Minister and leader of his parliamentary group of 35 MLAs. On 1 April,1937 he took oath as the leader of the coalition Govt. Sir Anderson (1932-1937), consisted of , Besides Huq as Chief Minister holding the portfolio of Education, 5 Hindus and 5 Muslim ministers. Nalini Ranjan Sarker, Finance, Bijoy Prasad Singha Roy, revenue, Maharaja Siris Chandra Nandy, communication and public works, Prasanta deb Raikut, forest and exercise, Mukunda behari Mallik, cooperative credit and rural indebtedness, Sir Khwaja nazimuddin, home, Nawab Khwaja Habibullah, agriculture and industry, H.S, Surawardy, commerce and labor, Nawab Musharaf Hussain , judicial and legilative, Syed Nausher Ali, public heaith and local self govt.
Not understanding the weaknesses of a coalition Govt. with varying ideologies, The KPP pressed for some radical changes in agriculture and social systems. Moreover a number of LPP party members voted against the budget along with the congress on 29 July, 1937, After some days 21 left wing members from KPP left the coalition and Huq became dependent on League.
Due to constant stress and strain, ultimately, Huq resigned on 2 Dec. 1941 and again formed another govt. known as Shyama-Huq ministry on 12 Dec. 1941. Huq's second ministry got the support of Congress, Forword Bloc, Hindu Mahasabha, KPP(shyansuddin), KPP(Huq), Independents. It was an all party ministry except League.
Being out of the office of the Ministry , The Muslim League got its only duty to find fault in Mukherjee-huq ministry. the second ministry also did not last long and a league dominated third ministry with Nazimuddin as chief Minister took the office.