Ignoring the warning of action, MLAs loyal to Yeddyurappa, who broke his 40-year-old association with BJP 11 days ago, showed open defiance, putting the BJP in a quandary.
Reacting to the opposition demand to dissolve the assembly, Shettar replied in the negative saying there is no question of doing so.
Higher education minister CT Ravi alleged Yeddyurappa is having a "secret pact" with Congress as he has not stated anything against it.
Ravi said said the formation of KJP will not affect BJP's prospects in future. "BJP cannot be weakened by anyone (who leaves the party)," he added.
Describing Yeddyurappa as a "selfish person" with "ego problems", he said the claims of thirty legislators supporting Yeddyurappa is a media creation.
Yeddyurappa had on Sunday dared the BJP to dissolve the assembly and seek a fresh mandate saying the Shettar government had no majority in the assembly now.
Seeking to send a tough message to Yeddyurappa's loyalists, Shettar had on Saturday sacked his trusted lieutenant BJ Puttaswamy from the ministry while the party had suspended Tumkur MP GS Basavaraju.