Litigation and Arbitration

Litigation & Arbitration Lawyers in Nepal

Niti Partners & Associates is a top Kathmandu-based law firm in Nepal  representing businesses, financial institutions, and international investors in litigation and arbitration matters across Nepal. Led by Sameep Khanal, a top litigation lawyer in Nepal, who holds an LL.M. in International Dispute Settlement from the University of Geneva and the Graduate Institute, our team combines international dispute resolution training with direct experience inside Nepal’s judiciary. Khanal clerked for Supreme Court Justice Tila Shrestha and interned with Justice Hari Phuyal early in his career. We represent clients before District Courts, High Courts, the Revenue Tribunal, and the Supreme Court, as well as in domestic and cross-border arbitration.

Our litigation and arbitration practice in Nepal covers commercial and civil disputes (Dewani Muddha) under the Muluki Civil Code, public procurement and construction disputes under the Public Procurement Act (add link here), tax and revenue litigation, criminal defense (Faujdari Muddha) under the Muluki Criminal Code, constitutional writ petitions, and arbitration and enforcement of awards under the Arbitration Act. Clients range from domestic enterprises and banks to foreign direct investment (FDI) entities and infrastructure companies operating in Kathmandu, Pokhara, Chitwan, Biratnagar, Nepalgunj, and Butwal.

Litigation and Arbitration Law in Nepal

Nepal’s dispute resolution system runs through a three-tier court structure namely District Courts, High Courts, and the Supreme Court  alongside specialized forums such as the Revenue Tribunal for tax matters and the Public Procurement Monitoring Office (PPMO)  for procurement disputes. The Muluki Civil Code and Muluki Criminal Code govern most civil and criminal claims, while the Arbitration Act governs both domestic arbitration and the recognition of foreign awards, since Nepal is a signatory to the New York Convention . For a fuller breakdown of how Nepal’s arbitration framework treats cross-border awards, see our guide on enforcement of foreign arbitral awards in Nepal.

Businesses operating under government contracts face an additional layer of regulation enforced through the PPMO. A blacklisting order, a wrongful bank guarantee encashment, or a disputed variation order can each threaten a company’s ability to keep operating, which is why procurement disputes are often handled on an urgent, interim-relief basis rather than through ordinary case timelines.

Our Litigation & Arbitration Services in Nepal

 Commercial & Civil Litigation (Dewani Muddha)

We represent domestic and international clients in complex civil and commercial disputes under the Muluki Civil Code, including:

• Contract breach (karar bhanga) and specific performance suits
• Corporate debt and loan recovery (tirauna and rin asuli)
• Mortgage (bandaki) enforcement
• Shareholder disputes and corporate governance conflicts
• Property partition (angsha banda), inheritance and succession disputes (aputali and uttaradhikar), and land encroachment or boundary conflicts
• Estate administration (ichhapatra) and title conflicts
• Family law matters, including contested and mutual-consent divorce (Samanda Bischet), spousal alimony, and child custody and guardianship
• Tenant lease evictions (ghar vada)
• Civil tort liability and professional negligence claims (kshatipurti)

For property-specific disputes, our dedicated property law page  covers title conflicts and boundary claims in more depth.

Public Procurement, Construction & Blacklisting Defense

Contractors, developers, and infrastructure companies operating under the Public Procurement Act face time-sensitive risks that can halt a project or a company’s ability to bid on future government work. We handle:

• Blacklisting defense (Kalosuchi Fukuwa): Writ petitions challenging PPMO debarment decisions, including urgent applications for interim stay orders that suspend a blacklist while the case is heard
• Bank guarantee and asset unfreezing (Bank Guarantee Fukuwa / Rokka Fukuwa): Injunctions against wrongful encashment of performance bonds and bid securities, and urgent motions to unfreeze accounts or property during regulatory audits
• Contract and payment disputes: Variation orders, price adjustments, and time-overrun claims
• Power Purchase Agreement (PPA) disputes: Representation on infrastructure and energy project claims

Our guide on price adjustment compliance in Nepal’s public procurement framework  covers this in more depth for contractors managing active government contracts.

 Tax & Revenue Litigation

We represent domestic and multinational businesses before the Revenue Tribunal and the courts in disputes involving:

• Arbitrary or disputed tax assessments
• VAT and excise duty penalties
• Large Taxpayers Office (LTO) audits and enforcement actions
• Revenue fraud and tax evasion allegations (kar chhal), on both the defense and dispute side
• Writ petitions where a tax authority’s decision appears procedurally unlawful or beyond its statutory authority

Our article on responding to Nepal’s tax office decisions and inaction walks through the practical options available once an assessment is issued.

 Constitutional Writ Petitions

When a government body, regulator, or public office acts unlawfully, a writ petition to the High Court (Article 144) or Supreme Court (Article 133)  is often the fastest available remedy. We regularly pursue:

• Certiorari petitions to quash an unlawful administrative decision
• Mandamus petitions to compel a public authority to act
• Challenges against decisions by the PPMO, the Large Taxpayers Office, Nepal Rastra Bank, and the Department of Industry
• Interim stay orders sought alongside writ filings to protect a client’s position while the case is pending

Criminal Defense & White-Collar Offenses (Faujdari Muddha)

Our criminal defense practice covers both individual and corporate exposure, including:

• Fraud and cheating (thagi)
• Document forgery and counterfeiting (kirte and jalsaji)
• Criminal breach of trust (aparadhik vishwasghat)
• Corporate tax evasion and revenue fraud (kar chhal)
• Bounced cheque litigation (check anadar)
• Cybercrime and online digital defamation (cyber aparadh)
• Money laundering investigations by the Department of Money Laundering Investigation (sampati shuddhikaran)
• Foreign exchange and hundi violations (bideshi mudra)
• Customs smuggling seizures (taskari)
• Industrial safety and criminal negligence prosecutions

We advise clients from the point of initial investigation through trial, focusing on protecting client rights early and managing exposure before charges are formally filed.

 Arbitration & Enforcement of Awards

For cross-border commercial contracts, joint ventures, and construction agreements, arbitration is often the preferred dispute resolution mechanism. We advise on:

• Drafting enforceable arbitration clauses at the contract stage
• Representation in NEPCA institutional proceedings
• Enforcement of domestic and foreign arbitral awards before Nepal’s courts, including matters governed by the New York Convention. 
• FDI and joint-venture commercial disputes

If you’re negotiating a new contract, our piece on arbitrability and drafting arbitration clauses in Nepal  is a useful starting point before a dispute ever arises.

Why Work With Niti Partners

• Geneva-trained leadership. Managing Partner Sameep Khanal holds an LL.M. in International Dispute Settlement from the University of Geneva and the Graduate Institute.
• Supreme Court experience. Direct clerkship and internship experience with Supreme Court Justices Tila Shrestha and Hari Phuyal.
• Published legal authority. Contributing authors to the ICLG Nepal Dispute Resolution Guide  and Mondaq. 
• Pan-Nepal representation. Active matters in Kathmandu, Pokhara, Chitwan, Biratnagar, Nepalgunj, and Butwal.
• Sector depth. Particular experience with FDI entities, banks, and infrastructure and construction companies navigating Nepal’s courts and regulators for the first time.

Frequently Asked Questions (FAQs)

What is the court hierarchy for filing a civil or commercial case in Nepal?
Nepal’s judiciary has three tiers: District Courts, High Courts, and the Supreme Court, which is the final appellate authority and the sole forum for constitutional writs under Article 133. Commercial and tax disputes typically begin at the District Court or the Revenue Tribunal, and public procurement disputes often route through PPMO review before reaching the courts.

How much does it cost to hire a litigation lawyer in Nepal?
Fees depend on case complexity, forum, and expected duration rather than a fixed national schedule. Commercial matters involving injunctions or blacklisting defense typically cost more than routine civil filings. We provide a fee estimate after an initial confidential consultation.

How long does a civil lawsuit take in Nepal?
A straightforward District Court claim can conclude in a few months if uncontested; commercial disputes that proceed to appeal commonly take one to three years. Time-sensitive matters can often secure interim stay orders within days to weeks even while the underlying case continues.

What is a writ petition and when can I file one?
A writ petition is a constitutional remedy filed with the Supreme Court or a High Court challenging an unlawful act by a government body or regulator for example, an arbitrary tax assessment or a PPMO blacklisting order. Writs are typically used when no adequate alternative remedy exists and urgent relief is needed.

What can I do if my company has been blacklisted by the PPMO?
A blacklisted company can file a writ petition challenging the decision on procedural or substantive grounds. Courts frequently grant interim stay orders suspending the blacklist’s effect while the petition is heard, so acting quickly after receiving a notice matters.

Should I choose arbitration or litigation for a commercial dispute?
Arbitration generally suits cross-border and FDI contracts where confidentiality and enforceability abroad matter. Litigation is usually necessary where a public authority is involved or urgent injunctive relief is needed. Many disputes involve both. An award may still require court assistance for enforcement.

How is a foreign arbitral award enforced in Nepal?
Nepal is a New York Convention signatory, and foreign awards are enforceable through Nepal’s courts under the Arbitration Act, subject to limited grounds for refusal such as procedural irregularity or public policy conflict.

What should I do if I am accused of financial or white-collar crime?
Avoid making statements without counsel present, preserve all financial and transactional records, and retain a lawyer experienced in both criminal law and the relevant regulatory framework. Early legal involvement can affect charging decisions, bail eligibility, and how evidence is handled at trial.

Speak With a Litigation Lawyer in Nepal

Whether you’re facing a PPMO blacklisting notice, a tax assessment dispute, a commercial contract breach, or need arbitration counsel for a cross-border agreement, our team can assess your matter and outline next steps.

Phone: 9803831179 Email: [email protected]