The District Courts, High Courts, and the Supreme Court reside as the primary courts in Nepal, where the district courts are the primary decision providers apart from in instances of some writ procedures or applications that might be filed in courts with higher authorities than the District Courts.
Apart from the regular dispute resolution proceedings, the existing Nepalese Laws also provide scenarios for Alternative Dispute Resolutions (ADR).
As per the Media Regulation, Online media or digital media include method, process, or medium that produces, publishes, transmits, or disseminates message-oriented or thematic opinion, photo, audio visual by using sign, symbol, text, voice, graphics, song, music, video, animation and various multi-media through the internet, after having been established or registered pursuant to the prevalent law and adopting the journalism and editorial principles by using the technology based on the internet.
Online media includes any method, process, or medium of online journalism through the internet, however, the definition is not clear about the intermediaries such as WhatsApp, Viber, etc.
Property and Family related disputes are two of the major civil disputes that are settled through regular court proceedings aside from arrangements that are made through written deeds or contracts.
These Disputes are governed through/by the Muluki Civil (Code) Act, 2074 B.S. (2017 A.D.) (hereinafter referred to as the “Civil Code”).
The Code provides time limitations for filing legal suits on each related dispute.
Apart from the above-mentioned civil disputes, there are other disputes arising out of contractual performances which are also a part of the Civil Code.
Current regulations provide for limitations to choose between the dispute resolution mechanisms that are to be adopted for certain business relations.
Generally, contracts dealing with small transactions state the courts as the dispute settlers. However, business contracts find it efficient to have their disputes settled through an Alternative Dispute Resolution (ADR) mechanism.
The volatility of the Business environment in Nepal is caused by a lack of clear policies, labor disputes, unsuitable demands, inefficient supplies, unpredictable market structures, and various turbulences. These, in turn, might create difficulty in contractual performances. Thus, the need for dispute settlement clauses to be installed in the contracts beforehand arises.
Arbitration is usually accepted as an easy and cost-efficient method of dispute settlement which in Nepal is governed by the Arbitration Act of 2055 B.S. (1999 A.D.).
The Foreign Investment and One-window Policy, 2049 B.S. (1992 A.D.) and the Foreign Investment and Technology Transfer Act 2049 B.S. (1992 A.D.) provide that disputes are either to be settled by mutual consultations in the presence of the Department of Industries or if the same is not possible then for industries with fixed assets/investments of up to NRs. 500 million settlement shall be done through arbitration in accordance with the Rules of the United Nations Commission on International Trade Law (UNCITRAL).
These arbitration proceedings are to be held in Kathmandu, Nepal. The Laws of Nepal are applicable.
Also, for Investment Board Nepal Projects, the Project Development Agreement (PDA) or, the Project Investment Agreement (PIA) also include clear provisions for dispute resolution.
For industries with fixed assets/investments of more than NRs. 500 million, the disputes may be settled as per the Joint Venture Agreement (JVA) or, the Share Purchase Agreement (SPA).
Note: This write-up should not be considered an expert legal opinion. This has been drafted only for the purpose of a general understanding of the subject matter.
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