Arbitration

Arbitration

We represent clients in both domestic and international arbitration, acting for national and international companies as claimants and respondents. Our practice covers the full life cycle of a dispute: pre-contract strategy and negotiation, drafting arbitration agreements, initiating and pursuing claims, defending against them, securing interim measures and enforcing the resulting award.

The Legal Framework

Arbitration in Nepal is governed by the Arbitration Act, 2055 (1999), which replaced the earlier 1981 Act and drew on the UNCITRAL Model Law to bring Nepal closer to international standards. Disputes reach arbitration in two main ways: through arbitration clauses that parties agree in contracts such as loan agreements, joint ventures and EPC contracts, and through statutory submission, most notably under Section 58 of the Public Procurement Act, 2063 (2007) for public procurement disputes and Section 40 of FITTA, 2019 for disputes between the Government of Nepal and foreign investors.

Recent amendments introduced a formal fast-track procedure, shortened enforcement timelines for expedited awards and narrowed the grounds for challenging an award. Ad hoc arbitration under UNCITRAL Rules remains common in Nepal, which makes getting the arbitration agreement and procedural choices right at the drafting stage especially important, since there is often no institution’s rules or secretariat to fall back on if something is left ambiguous.

The most active areas for arbitration track the economy: large infrastructure, hydropower, construction and public procurement dominate the caseload.

What We Do

• Pre-contract strategy and negotiation: structuring contracts so a client’s position is protected if a disagreement arises later.
• Drafting arbitration agreements: clauses and standalone agreements with close attention to seat, rules and institutional choice.
• Initiating and pursuing claims: building and presenting the claimant’s case through to award.
• Defending claims: protecting a respondent’s position at every stage.
• Interim measures: securing assets, preserving evidence or restraining a counterparty before a final award.
• Enforcing awards: domestically and, for awards made abroad, through Nepal’s foreign award enforcement process.

Industries We Cover

Construction, road and transport projects, telecoms, insurance, energy and natural resources, commodities, technology, banking and financial services, international trade, manufacturing and leisure, along with shareholder and joint venture disputes. A hydropower contract dispute calls for a different skill set than a shareholder disagreement, even though both run through the same procedural framework, and we staff matters accordingly.