Legal Environment for Business in Nepal 26 February 2017 Law & Business Law Legal Environment for Business in Nepal 26 February 2017 Saroj Shrestha

Law Making Procedures and Law Operating System for Business in Nepal Legislation Legislation is the law made by the legislative body of the government. Latin term ‘Legis’ + ‘latern’ denote ‘Law + making’. It means that the lawmaking body of the government is legislature. It is the main source of law in the modern states. Legislative: Legislative is a body of elected representatives from among the general public, who are empowered to make rules of the country. Saroj Shrestha

Law making procedures.. The law passed by the legislative body of the government is called legislation or statutes. It makes amends and ratifies the laws and is called statute. It is made according to the change of time and is the outcome of long series of discussions among the representatives of the people. e.g. Contract Act, 2056, Company Act, 2063 The law relating to business is made in the parliament, where representatives of the people do participate. They make a law after fulfilling a long series of discussion. Saroj Shrestha

Precedent Judicial decisions are known as precedents. ‘A precedent is a judicial decision which contains in itself a principle’. Such principle is created in the course of verdict, which fulfils the vacuum of law. Such a principle is regarded as the law for cases of the same nature and is binding to the subordinate courts. Law is that what the justice says in his decision.

Conventional Law It is another important source of law. Agreement between the nations is called treaty. International laws are the collections of such conventional laws and agreements such as law of sea, law of land, law of war etc. International business organizations are more active in national, regional and world business nowadays. e.g. GATT, WTO, EU, SAFTA treaties. Bilateral Agreements between nations and conventions of the business communities are the significant sources of national and international business laws. e.g. Nepal India Transit Treaty and Nepal India Trade Treaty

Executive Orders An executive body also makes laws in the name of ordinance, order and regulations. It also fulfils the vacuum of law and is more useful to maintain day to day administrative function of the executive. This power of the executive body (Council of Ministers) is derived from express delegation of legislative of the government. Saroj Shrestha

Business Law Business law has a vital role in creating, developing, conducting, regulation, controlling, enhancing and systemizing the business activities. It is common knowledge that ignorance of law is not excused. Law breaching activities are regarded as crimes. The businessperson also needs to be acquainted with the legal principles and provisions that are connected with the business.

Judicial System Judiciary: Part 11 of Constitution of Nepal Powers relating to justice in Nepal shall be exercised by courts and other judicial bodies in accordance with the Constitution, other laws and the recognized principles of justice. All shall abide by the orders or decisions made in the course of trial of lawsuits by the courts. Saroj Shrestha

Courts of Nepal There are following courts in Nepal: (a) Supreme Court, (b) High Court, and (c) District Court. In addition to the courts, judicial bodies may be formed at the Local level to try cases under law or other bodies as required may be formed to pursue alternative dispute settlement methods.

Supreme Court: The Supreme Court shall be a court of record. All courts and judicial bodies shall, except as otherwise provided in the Constitution, be under the Supreme Court. The Supreme Court shall have the final authority to interpret the Constitution and laws. The Supreme Court may inspect, supervise and give necessary directives to, it and courts, specialized courts or other judicial The Supreme Court shall consist of a maximum of twenty Judges, in addition to the Chief Justice of Nepal. 2 February 2019

Cont.. bodies under its jurisdiction, in relation to matters relating to judicial administration or management. All must abide by any interpretation of the Constitution or a law made by or any legal principle laid down by the Supreme Court in the course of trying a lawsuit. If anyone makes obstruction in the dispensation of justice by, or disregard any order or judgment handed down by, it or any of its subordinate courts, the Supreme Court may, in accordance with law, initiate proceedings and impose punishment for contempt.

Supreme Court Any citizen of Nepal may file a petition in the Supreme Court to have any law or any part thereof declared void on the ground of inconsistency with the Constitution because it imposes an unreasonable restriction on the enjoyment of any fundamental right conferred by the Constitution or on any other ground, or to have any law or any part thereof made by a State Assembly declared void because it is inconsistent with any law made by the Federal Parliament or to have any law or any part thereof made by a Municipal Assembly or Village Assembly

Cont.. declared void because it is inconsistent with a law made by the Federal Parliament or the State Assembly, and the Supreme Court shall have an extra-ordinary power to declare that law to be void either ab initio or from the date of its decision if the law appears to be so inconsistent. Under the extra-ordinary jurisdiction, the Supreme Court may issue appropriate orders and writs including the writs of habeas corpus, mandamus, certiorari, prohibition and quo warranto. 2 February 2019

Cont.. Subject to this Constitution, the Supreme Court shall, as provided in a Federal law, have the power to originally try and settle cases, hear appeals, test judgments referred for confirmation, revise cases, hear petitions or review its judgments or final orders. Judges other than those having handed down the previous judgment shall make such review. The Supreme Court shall settle appeals from cases originally tried and settled by a High Court and matters of public importance involving questions of interpretation of the Constitution

Cont.. and law or cases recommended by a High Court, accompanied by its opinion that it is reasonable that decision be made by the Supreme Court. 2 February 2019

High Courts There shall be a High Court in each State. If anyone makes obstruction in the dispensation of justice by, or disregard any order or judgment handed down by, it or any of its subordinate courts or judicial bodies, the High Court may initiate proceedings on and impose punishment for contempt, as provided for in the Federal law 2 February 2019

High Courts उच्च अदालत विराटनगर उच्च अदालत विराटनगर, इलाम इजलास उच्च अदालत विराटनगर, धनकुटा इजलास उच्च अदालत विराटनगर, अस्थायी इजलास ओखलढुंगा उच्च अदालत जनकपुर उच्च अदालत जनकपुर, राजविराज इजलास उच्च अदालत जनकपुर, अस्थायी इजलास वीरगंज उच्च अदालत पाटन उच्च अदालत पाटन, हेटौंडा इजलास उच्च अदालत पोखरा उच्च अदालत पोखरा, बाग्लुङ्ग इजलास उच्च अदालत तुलसीपुर उच्च अदालत तुलसीपुर, बुटवल इजलास उच्च अदालत तुलसीपुर, नेपालगंज इजलास उच्च अदालत सुर्खेत उच्च अदालत सुर्खेत, जुम्ला इजलास Saroj Shrestha

High Courts Jurisdiction of High Court: The High Court shall have the power to issue necessary and appropriate orders, for the enforcement of the fundamental rights conferred by this Constitution or for the enforcement of any other legal right for which no other remedy has been provided or for which the remedy even though provided appears to be inadequate or ineffective or for the settlement of any legal question involved in any dispute of public interest or concern,

Cont… High Court may issue appropriate orders and writs including the writs of habeas corpus, mandamus, certiorari, prohibition and quo warranto. The High Court shall, in accordance with the Federal law, have the power to originally try and settle cases; hear appeals and test judgments referred for confirmation. Other powers and procedures of the High Court shall be as provided by the Federal law. Saroj Shrestha

District Courts There shall be a District Court in each District. The Local level judicial bodies established in accordance with the State law shall be subordinate to the District Court. The District Court may inspect as well as supervise and give necessary direction to its subordinate judicial bodies. Saroj Shrestha

Jurisdiction of District Court: District Court shall have the power to originally try and settle all cases under its jurisdiction, to try petitions under law, including petitions of habeas corpus and prohibition, hear appeals under law from decisions made by quasi judicial bodies, hear appeals from decisions made by Local level judicial bodies formed under the State law, institute contempt proceedings and punish for contempt under the Federal law if anyone makes obstruction in the dispensation of justice by, or disregards any order or judgment by, it or any of its subordinate courts. Saroj Shrestha

Cont.. Other provisions relating to the jurisdiction and procedures of the District Courts shall be as provided for in the Federal law. Specialized courts: Other specialized courts, judicial bodies or tribunals may be formed to try and settle specific types and nature of cases other than those mentioned in Article 127, as provided for in the Federal law. Saroj Shrestha

If you have any questions or concerns, please discuss .. Thank you ! Saroj Shrestha