The KC-M also announced at a two-day meeting that concluded at Charalkunnu in Pathanamthita district that the party MLAs would now sit as a separate block in the state assembly.
The party would be "equidistant" from Opposition United Democratic Front, the ruling Communist Party of India Marxist -led Left Democratic Front and the Bharatiya Janata Party-led National Democratic Alliance, KC-M Supremo K M Mani told reporters after the meeting.
Hitting out at the Congress, Mani said there were attempts to tarnish KC-M's image and also weaken the party in many ways.
The party, which has one MP, said its relationship with the United Pemocratic Alliance would be issue-based.
The party has six MLAs in the present assembly.
On Saturday, while inaugurating the conclave, 82-year-old Mani had stated that his party had received only "insults and humiliations" from the Congress.
Congress leaders in the state had, however, tried to iron out the differences with statements that KC-M was an integral part of the front and any issues with the Congress would be sorted out.
Relations between the KC-M and the Congress over the bar bribery scam sharpened recently after Congress leaders Oommen Chandy and Ramesh Chennithala attended the betrothal ceremony of the daughter of controversial hotelier Biju Ramesh with the son of Congress leader and former minister Adoor Prakash.
Ramesh, working president of the Kerala State Bar Hotel Owners Association, had levelled bribery charges against Mani which finally led to his resignation in November last.
KC-M has maintained that a "conspiracy" was behind the scam.
The rift in relations between the two parties came to the fore after Mani announced he would keep away from a crucial UDF leaders liaison committee meeting last month, forcing the front to postpone it. Subsequently, Congress had deputed former chief minister Oommen Chandy to hold talks with Mani to resolve the issues.
Though Chandy met Mani, he failed to get any assurance from the latter, who maintained that the party will take a final call on all matters at its Charalkunnu meeting.
The KC-M, which has a history of switching fronts and suffering many splits since its inception in 1964, has a strong base in the central Travancore belt, especially among Christians.