Chaudhary, 67, breathed his last while undergoing treatment at Kathmandu Model Hospital in Kathmandu, said family sources.
Late Chaudhary was elected under proportional representation from Dang district.
According to CPN-ML General Secretary CP Mainali, Chaudhary had played active role in the peasant movement that the party spearheaded in Dang district during Panchayat regime.
A House meeting on Thursday passed a condolence proposal over Chaudhary´s death.
PM Dahal condoles demise of party's Central Advisor Bhatta