Month: September 2025

Updating Gender Markers in Legal Documents in Nepal

Posted on by Rajanish Ojha

  I.     Introduction

The ability to update gender markers in official legal documents is a fundamental aspect of the right to self-identification and human dignity. In Nepal, this right is recognized under constitutional guarantees and supported by key judicial precedents, most notably Sunil Babu Pant V. Government of Nepal (2064) (2007). Despite this legal recognition, administrative procedures remain opaque, inconsistent, and heavily reliant on informal practices.

This briefing outlines the legal framework, document-specific procedures, and practical challenges associated with updating gender markers in Nepal.

 II.        Legal Framework

 1)        Constitutional and Judicial Basis

The right to update one’s gender marker is grounded in several legal instruments and precedents, which include:

  • Constitution of Nepal (2015):
    1. Article 12: Right to citizenship based on gender identity;
    2. Article 18: Right to equality;
    3. Article 42: Right to social justice.
  • Supporting Case Law
    1. Sunil Babu Pant V. Government of Nepal (2064) (2007): The Supreme Court of Nepal mandated recognition of non-binary identities and provision of corresponding legal documentation;
    2. Dilu Dibuja v. Ministry of Foreign Affairs (2017): Established the right to a passport reflecting one’s updated gender identity.

   III.           Legal Documents Where Gender Marker Can Be Updated

The documents where gender marker changes are permitted (in practice or law) include:

  1. Birth Certificate;
  2. Citizenship Certificate;
  3. Passport;
  4. National Identity Card (NID);
  5. Voter ID;
  6. Academic Transcripts and Certificates;
  7. Driver’s License.

 IV.          Procedure / Detailed Analysis

While the legal framework in Nepal does not provide a single uniform procedure for updating gender markers, in practice, individuals may apply for amendments across various official documents. The table below sets out the key documents where gender marker updates are permitted, the procedural steps typically required, and important notes on challenges or inconsistencies in implementation.

Document

Procedure

Notes

Birth Certificate

Apply at ward office with:
a) Application for amendment;
b) Updated legal ID;
c) Affidavit or court order (sometimes required).

 

–

Citizenship Certificate (Primary Document)

Apply at District Administration Office (DAO) with:

a)      Original citizenship certificate;

b)     Self-declaration/affidavit of gender identity;

c)      Recommendation letter from recognized LGBTQ+ organization (e.g., Blue Diamond Society);

d)     Proof of residence;

e)      Parents’ citizenship certificates (if requested).

If accepted, DAO issues a new certificate listing “O” as gender marker.

•     Most DAOs do not permit binary-to-binary changes (e.g., M→F);

•     Some DAOs may ask for medical certificates or deny applications arbitrarily;

•     Procedures vary due to lack of clear administrative code.

Passport

Apply to Department of Passport with:

a)      Updated citizenship certificate;

b)     Passport application form with “O” marked as gender;

c)      Passport photos & applicable fees.

•     Updated citizenship certificate is mandatory;

•     If denied, decision can be legally challenged.

National Identity Card (NID)

Apply through ward-level center with:

a)      Updated citizenship certificate;

b)     Completed NID form.

•     NID auto-syncs gender from citizenship;

•     Errors may occur in digital system if citizenship not updated first.

Voter ID

Apply at District Election Office with:

a)      Updated citizenship certificate;

b)     Voter ID amendment request form/application letter.

•     No clear directive; implementation inconsistent;

•     Some offices deny requests arbitrarily;

•     May require escalation to Election Commission.

Academic Transcripts & Certificates

Apply through institution registrar with:

a)      Updated citizenship or passport;

b)     Affidavit/explanatory letter;

c)      Court affidavit or notarized deed poll (in some cases).

•     Policies vary by institution;

•     Tribhuvan University often requires notarization.

Driver’s License

Apply to Department of Transport Management with:

a)      Updated citizenship certificate;

b)     Existing driving license;

c)      Correction request form.

• Some offices unlawfully ask for medical certificate or affidavit.

Note: While the following procedures list typical documentation requirements, individual offices may request additional materials or impose informal conditions. Applicants are advised to prepare for such variations and retain copies of all submissions.

V.          Recommendations for Applicants

  1. Always carry updated citizenship when applying for changes in secondary documents;
  2. Secure support letters from recognized LGBTQ+ organizations;
  3. Maintain documentation copies and receipts for all submissions.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.

For quick legal assistance:

Phone/Viber/WhatsApp: +977 9709035477

For specific legal advice and assistance regarding the process of updating gender markers in official documents in Nepal, please contact our office to schedule a consultation with our experts.

Overview of Infertility Management Service Operation Related Standard, 2082 (2025)

Posted on by Rajanish Ojha

The Ministry of Health and Population under the Government of Nepal (the “Ministry”) issued the Infertility Management Service Operation Related Standard, 2082 (2025) (the “Infertility Management Service Standard”) on 17 Bhadra 2082 (02 September 2025). The primary objective of this standard is to ensure quality infertility management services within Nepal, addressing both the identification and treatment of infertility, while also safeguarding reproductive rights guaranteed by the constitution.

This article provides a general overview of the Infertility Management Service Standard, infertility management services to be provided, operational procedures, and infrastructure requirements for governmental, non-governmental and private health institutions involved in infertility treatment.

1.    Definition

The key definitions under the Infertility Management Service Standard are as follows:

  1. Health Institution: A government health institution providing services such as screening, diagnosis, prevention and consultation and referral, medicinal and hormonal treatment, surgical services, I.U.I. service, I.V.F. service, and the term also includes non-governmental or private or non-profit community health institutions established in accordance with the prevailing law.
  2. U.I. (Intra-Uterine Insemination) Service: A technique in which human semen is cleaned, selected and placed in the human uterus in a specific manner.
  3. V.F. (In-Vitro Fertilization) Service: A technology in which an embryo is prepared outside the human body and implanted into the human uterus.
  4. Infertility: The state in which a woman and a man do not conceive even after a year of regular sexual intercourse without using any contraceptive method.

 2.       General Procedure and Standard for Infertility Management Services

As per the Infertility Management Services Standard, the following services will be provided based on the health institution’s standard, physical infrastructure, and available human resources, details of which are as follows:

  1. Screening, diagnosis, prevention and consultation and referral: These services will be provided in governmental, non-governmental, or private health institutions.
  2. Medicinal and hormonal treatment: These services will be provided by governmental, non-governmental, or community health institutions that have been trained on infertility management.
  3. Surgical services: These services will be provided by governmental, non-governmental, or community health institutions with qualified maternity and gynaecology specialists trained in infertility management.
  4. U.I. service
  5. V.F. service

 3.      Specific Standard for I.U.I. and I.V.F. Services

To operate an I.U.I. and I.V.F. service, health institutions must comply with certain standards, which include:

S.N.

Standards for I.U.I. Service

Standards for I.V.F. Service

1.       

The health institutions operating I.U.I. services must have a separate department with obstetrics and gynecology services, andrology laboratory, cold chain system, pharmacy, a minimum C-class laboratory and treatment services as classified by the Public Health Service Regulation, 2077 (2020).

The health institutions operating I.V.F. services must have a separate department with obstetrics and gynecology services, andrology laboratory, cold chain system, pharmacy, a minimum C-class laboratory and treatment services as classified by the Public Health Service Regulation, 2077 (2020).

2.       

The health institution must have minimum human resource, physical infrastructure, tools, equipment and consumables required as provided under the Infertility Management Service Standard.

The health institution must have minimum human resource, physical infrastructure, tools, equipment and consumables required as provided under the Infertility Management Service Standard.

 

3.       

The health institution must be an agreement with health institutions capable of providing intensive care.

If emergency services and intensive care units are not available, the health institutions must have agreement with at least one specialist hospital to provide such services, when required.

Note: The distance between health institution (providing I.V.F. service) and hospital (with which the agreement is made) should not be more than 2 km in case of Kathmandu Valley, and within a distance of half an hour by ambulance or other means of transportation in the case of outside of Kathmandu Valley.

 

 4.         Other Standards Related to the Operation of I.U.I. and I.V.F. Services

The Infertility Management Service Standard provides for the required standards, including but not limited to the following:

  1. The semen collection room, andrology laboratory, and I.U.I. rooms are located together;
  2. The operating room and embryology laboratory should be connected with a door and a pass box between them, while strict access controls must be maintained. Both rooms, along with the andrology laboratory, must be air-conditioned and equipped with an HVAC or Coda tower system;
  3. There must be a designated space for cleaning instruments, comfortable and well-equipped semen collection rooms, and environmental controls to maintain temperature, humidity, and air quality as per specified standards;
  4. Governmental or non-governmental, or private I.V.F./I.U.I. service provider institutions should have their own pharmacy service unit, and that pharmacy should be registered in the Department of Drug Administration; and
  5. Furthermore, a registered pharmacy unit, proper waste management, and educational materials on infertility management must be available to ensure comprehensive care.

 5.         Standards Related to Building

The Infertility Management Service Standard provides for the required building-related standards, including but not limited to the following:

  1. Availability of well-equipped semen collection room, andrology laboratory, and IUI room in close proximity to each other, with adequate environmental controls like air conditioning and light prevention, to ensure a sterile and comfortable setting for infertility treatments should be present;
  2. The building must be differently-abled friendly; and
  3. If the institution does not own the building, a rental agreement of at least 5 years must be made.

6.         Standard Related to Donor

The Infertility Management Service Standard provides the standards for semen and oocyte donors, including but not limited to the following:

S.N.

Semen Donor

Oocyte Donor

1.       

A donor cannot donate more than ten times at intervals of less than 15 days;

A donor can donate a maximum of six times, with at least a three-month interval between donations;

2.      

The donor identity must not be revealed to the recipient;

Identity of the donor must be kept secret from the recipient;

3.      

The age of donor should be between 20 and 35 years;

Donor must be between 20 and 35 years of age;

4.      

In the case of married couples, both husband and wife must provide informed consent;

The donor must be clearly informed in an understandable language about the potential immediate and future complication before donation;

5.      

No individual should be compelled or enticed through inducement to donate.

In the case of married couples, both husband and wife must provide informed consent.

 

 7.        Approval/License for operation of I.V.F. and I.U.I. services

  • Approval/License:

A health institution willing to provide I.U.I. and I.V.F. services must obtain prior approval from the Ministry. Health institutions must be properly registered and adhere to the prescribed standards to qualify for approval. Applications for approval must be submitted with the required documentation, and the institution will be subject to on-site inspection by a designated monitoring committee.

  • Renewal of approval/license:

The application for renewal must be submitted at least three months before the approval/license’s expiry date. Institutions already providing infertility services must apply for permission within 90 days of the implementation of this Infertility Management Service, which is 27 Bhadra, 2082 (December 1, 2025).

 

 8.       Services may be closed

The Ministry may immediately close the infertility management services of non-governmental or private health institutions that fail to apply for renewal, do not meet the criteria within the prescribed period, do not report regularly, or fail to follow the instructions given during monitoring.

 9.       Revocation of License / Approval

If non-governmental or private health institutions in operation before the commencement of this standard applied for revocation of license stating that it is unable to operate services related to infertility management, the operating license of such non-governmental or private health institution will be revoked.

10.         Other standards include

  1. Health institutions must charge fees as per the Health Institution Operation Fee Schedule 2077; charging above the prescribed fees may result in legal action, including registration and renewal cancellation;
  2. A monitoring committee will oversee the quality of infertility management services, tools, equipment, and human resource management. Health institutions providing I.U.I. and I.V.F. services will be monitored twice a year or as needed;
  3. Information about health conditions, diagnosis, or treatment received by the service recipient of infertility services from governmental, non-governmental or private health institutions must be kept confidential;
  4. The Ministry, in accordance with various bodies, will make arrangements to conduct educational and fellowship programs for the production of human resources, including I.V.F specialist doctors and embryologists;
  5. A record form will be prepared to document infertility-related services. Health institutions must maintain records of infertility management services as per the prescribed format. If institutions spread fake news on social media, legal action will be taken. Free medical services for poor and needy citizens, constituting 10% of services, must be reported to the Ministry; and
  6. If any ambiguities arise regarding the application of these standards and require interpretation, the Ministry’s interpretation will be final.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.

For quick legal assistance:

Phone/Viber/WhatsApp: +977 9709035477

For specific legal advice regarding I.U.I. and I.V.F. service operation approval/licensing for health institutions, and related standards in Nepal, please contact our office to schedule a consultation with our experts.

 

 

 

Adopting a Child in Nepal: Legal Requirements for Domestic Adoption

Posted on by Rajanish Ojha
      I.          Introduction

Adoption in Nepal is governed by a detailed legal framework aimed at ensuring the best interests of the child. The relevant laws provide for both domestic and intercountry adoption, with specific eligibility criteria, documentation, and procedural steps.

This briefing outlines the key legal provisions, procedural steps, and practical implications for prospective Nepali (domestic) adoptive parents.

      II.              Legal Framework

The domestic adoption in Nepal is primarily governed by the following laws:

  • National Civil Code, 2074 (2017), Chapter on Adoption;
  • National Civil (Procedure) Code, 2074 (2017);
  • Children’s Act, 2075 (2018).

    III.          Definition of Adoption under Nepali Law

Adoption is the legal process whereby an individual or a couple assumes the parenting of a child from that child’s biological or legal parents, transferring all rights and responsibilities. Nepali law recognizes two types:

  • Domestic Adoption: By Nepali citizens residing in Nepal
  • Intercountry Adoption: By foreign nationals or Nepali citizens living abroad.

     IV.          Eligibility for Adoption

  1. Adoptive Parents
    • Eligibility Criteria

 As per National Civil Code, 2074 (2017), only the following individual/couple are permitted for adopting child, as listed below:

  • A married couple whose child has not been born even up to ten years of marriage,
  • An unmarried woman who is above forty-five years of age, a widow, a divorced woman, or a judicially separated woman, having no son or daughter;
  • An unmarried man having completed forty-five years of age, a widower, divorced or judicially separated man, having no son or daughter.

 In general, a person who already has a biological son cannot adopt another son, and a person who already has a biological daughter cannot   adopt another daughter. However, the National Civil Code, 2074 (2017) provides for few exceptions as listed below:

  1. If the biological son or daughter does not live with the parent due to judicial separation (i.e., court-ordered partition of property, lawful separation, or separation of bread and board from other coparceners), the parent may adopt a son or daughter.
  2. Further Exception: Even where a person has a biological son or daughter, the concerned court may permit adoption of another child if the person petitions the court, demonstrates sufficient financial capacity, and the court is satisfied that the petitioner can provide proper maintenance, health care, education, and care for the adopted child.
    1. Disqualification Conditions

 As per National Civil Code, 2074 (2017), the following individual/couple are disqualified from adopting child, as listed below:

  1. One who is of unsound mind;
  2. One who has been convicted of a criminal offense involving moral turpitude;
  3. One who lacks the financial capacity to afford the maintenance, health care, education, sports, entertainment, and care of a minor.
  • Adopted Child

 As per National Civil Code, 2074 (2017), only the following child is eligible for adoption, as listed below:

  1. One who has completed fourteen years of age;

  Exception: A child within the relation of three generations, or a son/daughter born to the wife’s ex-husband, may be adopted even if over fourteen years of age.

  1. One who is the only son or daughter;

 Exception: This restriction shall not apply if the adopting parent already has another biological son or daughter but is permitted by the court to adopt on the basis of demonstrated financial capacity and ability to provide proper maintenance, health care, education, and care for the adopted child.

  1. One who has already been adopted as a son or daughter;

Exception: This restriction shall not apply where the adoption has been annulled according to law.

  1. One who is in a higher degree of relationship than the person adopting;
  2. One who is not a citizen of Nepal;

Exception: This restriction shall not apply to a non-resident Nepali citizen who has obtained foreign citizenship.

  1. Where the difference of age between the adopter and the adoptee is less than twenty-five years;

Exception: This age-difference requirement does not apply if the adoptee is within the relation of three generations of the adopter.

 

    V.          Procedure for Adoption

The applicable procedure for domestic adoption of child are provided in the table below:

Steps

Action

Step 1

The individual/couple must prepare a duly executed deed of adoption;

Step 2

Submit a petition for adoption along with the adoption deed at the concerned District Court;

Step 3

Court conducts inquiry into the petition and verifies compliance with legal requirements (eligibility, consent, etc.);

Step 4

If satisfied, court issues an order granting permission and authenticates the adoption deed;

Step 5

If not satisfied, court issues an order refusing permission and informs the petitioner with reasons.

      VI.          Consent Requirements in Specific Circumstances

  1. General Rule: Written consent of both parents is required; if only one parent survives, consent of the surviving parent is sufficient.
  2. Divorce or Judicial Separation: If the parents are separated, consent must be obtained from the parent with whom the child is living under the separation arrangement.
  3. Where Parents Are Not Traced/Deceased/Remarried: Consent may be obtained from the guardian, person, or organization maintaining the child.
  4. Child above 10 Years: Written consent of the child is mandatory, given in the presence of the parent or guardian.
  5. Voluntariness: Consent must be free, informed, and voluntary, with no financial inducement, and the person giving consent must be informed of the meaning, legal status, and consequences of adoption.

      VII.          Rights and Obligations in Adoption

The rights, entitlements, obligations in relation to adoption pursuant to National Civil Code, 2074 (2017) are provided below:

Subject

Key Points

Entitlements and rights of adopted son/daughter

a)      Adopted child enjoys the same entitlements, obligations, and responsibilities as a biological child.

b)     Birth of a biological child after adoption does not affect equality of adopted child.

Use of Surname

a)      Adopted child may use surname of either/both adoptive parents.

b)     Child may also use surname of biological parents if desired.

c)      If adoption is annulled, surname reverts to biological parents.

Partition share of biological parents

a)      If adoption annulled, child regains right to partition share.

b)     If partition share already taken before adoption, child can retain such property.

Obligations of adoptive person

a)      Ensure maintenance, healthcare, education, sports, and entertainment.

b)     Protect rights and interests of the adopted child.

c)      Exercise parental authority under law.

d)     If obligations not met, child may live separately and claim partition share.

Obligations of adopted son/daughter

a)      Maintain and care for adoptive parents.

b)     Protect and manage property of adoptive parents.

c)      Protect rights and interests of adoptive parents.

Facility of visit and correspondence

Adoptive parents must allow child to visit or correspond with biological parents from time to time.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.

For quick legal assistance:

Phone/Viber/WhatsApp: +977 9709035477

For specific legal advice on adopting a child in Nepal, please contact our office to schedule a consultation with our experts.

Department of Industry’s Notice of Resumption of Services & Adjournment of Cases

Posted on by Rajanish Ojha

On 11 September 2025 (2082/05/26), the Department of Industry (DOI) under the Ministry of Industry, Commerce and Supplies issued a press release following the damage it sustained during the recent unrest on 8-9 September 2025 (2082/05/23-24).

Key Updates

  1. Resumption of Essential Services from 14 September 2025 (2082/05/29)

Despite disruptions, the DOI has confirmed that essential services will resume from 14 September 2025 (2082/05/29). This ensures that businesses and individuals with urgent requirements will be able to access necessary industrial registration and related services.

  1. Adjournment of All Pending Hearings

The DOI has announced that all hearings of cases and matters pending before it have been adjourned until further notice. Parties should note that no hearings will proceed as scheduled, and new dates will only be communicated once the DOI issues another notice.

Practical Implications

  1. For businesses awaiting service delivery: Expect delays in processing applications or requests until operations normalize.
  2. For parties with cases before the DOI: Treat all scheduled hearings as postponed indefinitely. Prepare to monitor future DOI communications for rescheduled dates.
  3. For compliance planning: Adjust timelines for filings, registrations, or disputes that depend on DOI’s administrative processes.

G&A’s Commentary

The DOI’s notice reflects the practical difficulties caused by recent events, but also provides clarity on continuity of essential services. Businesses should prepare for partial service resumption but anticipate delays in case hearings. We advise close monitoring of DOI updates and timely coordination with counsel to mitigate disruption to industrial and regulatory processes.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.

For quick legal assistance:

Phone/Viber/WhatsApp: +977 9709035477

For specific legal advice regarding industrial registrations, hearings, or compliance matters before the DOI, please contact our office to schedule a consultation with our experts.

 

Enlistment of Social Media Platforms in Nepal: A Mandatory Requirement

Posted on by Rajanish Ojha

Introduction

The Government of Nepal has taken decisive enforcement action against social media platforms operating in the country without registration. Following the expiry of the deadline under the Directives for Managing the Use of Social Media, 2080 (2023), the Ministry of Communication and Information Technology (MoCIT) has directed the Nepal Telecommunications Authority (NTA) to block unregistered platforms.

Key Highlights

  • Deadline expired: The 7-day registration deadline, issued on 12 Bhadra 2082 (28 August 2025), ended on 3 September 2025.
  • Immediate enforcement: From 4 September 2025, NTA began deactivating access to non-compliant platforms.
  • Major platforms affected: Global platforms including Facebook, Instagram, WhatsApp, YouTube, X (Twitter), LinkedIn, and Reddit face restrictions in Nepal.
  • Registered platforms: TikTok, Viber, Nimbuzz, Witk, and Poppo Live have completed registration, while Telegram and GlobalLink/Global Diary are in process.
  • Regulatory rationale: The move follows a Supreme Court directive requiring the government to regulate online platforms to curb harmful content, cybercrime, and misinformation.

Detailed Explanation

The Directives for Managing the Use of Social Media, 2080 mandate that both domestic and foreign social media operators must:

  • Register with MoCIT
  • Appoint a local contact person
  • Designate a grievance officer
  • Implement self-regulation mechanisms

Despite repeated government notices, major international platforms did not submit applications by the deadline. The authorities have now initiated deactivation, with the Ministry confirming that any platform completing registration will be reinstated immediately.

Action Points / Practical Implications

  • For Businesses: Companies relying on Facebook, Instagram, YouTube, or LinkedIn for marketing, communication, and recruitment may face immediate disruption. Alternative registered platforms should be explored.
  • For Platforms: Registration with MoCIT is now a legal pre-condition for operation in Nepal. Platforms should initiate compliance urgently to avoid commercial, reputational, and operational risks.
  • For Users: Individuals and businesses should prepare for temporary unavailability of unregistered platforms and consider diversifying digital communication channels.

Firm Commentary

This enforcement marks a turning point in Nepal’s regulatory approach towards digital platforms. While the government aims to ensure accountability and control harmful content, the sudden enforcement highlights gaps in preparedness for businesses and users who depend heavily on these platforms.
Gandhi & Associates is currently advising clients, including social media operators, on urgent compliance measures and the legal process for registration under MoCIT.

Disclaimer: This G&A Update is for general informational purposes only and does not constitute legal advice. For specific legal advice regarding social media enlistment requirements in Nepal, please contact Gandhi & Associates.

The Latest Amendment to the Arbitration Act, 2055 (1999)

Posted on by Rajanish Ojha

The Government of Nepal has introduced a significant amendment to the Arbitration Act, 2055 (1999) aimed at enhancing efficiency and aligning the arbitration framework with international standards. These changes were brought into effect on 18 Chaitra 2081 (31 March 2025) through the Act to Amend Some Nepal Acts Relating to Improving Economic and Business Environment and Enhancing Investment, 2081 (2025).

The key highlights of the amendment are provided below:

  1. Introduction to Fast-track Arbitration

Previously, the Arbitration Act 2055 (1999) did not recognize or provide for the mechanism of fast-track arbitration.

Now, the amendment has introduced a new provision under Section 13A of the Arbitration Act 2055 (1999), which allows the parties to settle disputes through fast-track arbitration services as prescribed by contract or agreement between them.

  • Grounds to invalidate an arbitral award

Previously, as per Section 30(3) (b) of the Arbitration Act 2055 (1999), arbitral awards could be invalidated on a few grounds, including:

  • where the dispute decided by the arbitral tribunal was not capable of settlement by arbitration under the laws of Nepal; and
  • where the decision of the arbitrator was likely to prove detrimental to public interests or policies.

Now, the amendment has revised Section 30(3) (b), removing “detrimental to public interests” as a ground for invalidating arbitral awards.

In addition, the newly inserted Section 30(4) provides that, while adjudicating applications to invalidate an arbitral award, the High Court shall not re-examine the merits of the case by re-evaluating the evidence. Furthermore, in case a party submits a separate application requesting to halt the enforcement proceeding, the High court may grant such a stay order only in the following circumstances:

  1. There is prima facie evidence of fraud or corruption, or
  2. There is substantive evidence that the applicant will suffer from irreparable harm if enforcement proceeds. 
  • Enforcement of an arbitral award

For the enforcement of an arbitral award, the concerned parties are under an obligation to implement the award of the arbitrator within 45 days from the date when they receive a copy of the award pursuant to Section 31 of the Arbitration Act 2055 (1999).

In this regard, previously, where an arbitral award was not implemented within the aforementioned time limit, the concerned party could file a petition before the District Court within 30 days of the expiry of such time limit. Upon such petition, the District Court was required to implement the award, ordinarily within 30 days, as if it were its own judgment pursuant to Section 32 of the Arbitration Act 2055 (1999).

Now, with the amendment to Section 32, in case of an award through fast-track arbitration, the District Court is required to enforce the award within 15 days.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice, advertisement, personal communication, solicitation or inducement. No attorney-client relationship is created through this content. Gandhi & Associates assumes no liability for any consequences resulting from actions taken based on information contained herein.

For quick legal assistance:

Phone/Viber/WhatsApp: +977 9709035477

For specific legal advice regarding arbitration proceedings and the enforcement of arbitral awards in Nepal, please contact our office to schedule a consultation with our experts.