Hierarchy and Jurisdiction of Courts and Tribunals in Nepal

The court is a place where legal cases are heard and decided. Act 127(1) of the Constitution of Nepal has mentioned the three tiers of court.

• Supreme Court
• High Court
• District Court

Supreme court :

The Supreme Court is the Nation's final court and the highest level of court. Article 128 contains the power and functions of the Supreme Court. All the courts and judicial bodies shall be under the supreme court (see also writ procedures in Nepal). The supreme courts shall have the final authority to interpret this constitution and laws. Supreme Court has the authority to inspect, supervise, and give necessary directives to courts, specialized courts, or other judicial bodies under its jurisdiction about judicial administration or management. All must abide by an 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 disregards any order or judgment handed down by, it or any of its subordinate courts, the Supreme Court may per law, initiate proceedings and impose punishment for contempt.

Jurisdiction of 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 fundamental rights conferred by the constitution.
• Supreme Court may issue appropriate orders and writs including the writs of Habeas corpus, mandamus, certiorari, prohibition, and quo warranto.
• Supreme Court shall have the power to try and settle cases, hear appeals, test judgments referred for confirmation, revise cases, hear petitions, or review its judgments or final order.
• 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 and laws or cases recommended by the high court.

High Court:

The high court is the second highest authority in Nepal. There shall be a high court in each state. Article 139 has dealt with the provision relating to the high court. The High Court may initiate proceedings in and impose punishment for contempt of anyone makes obstruction the dispensation of justice by, or disregards any order or judgements handed down by it or any of its subordinate courts or judicial bodies.

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 the constitution or for the legal rights for which no other remedy has been provided.
• High courts may issue appropriate orders and writs including the writs of habeas corpus, mandamus, certiorari, prohibition, and quo warrant.
• High Court shall have power to originally try and settle cases, hear appeals and test judgments referred for confirmation.

District court:

A district court is the court having the third highest authority in Nepal. Article 148 deals with the provision of the District Court. There shall be a District court in each district of Nepal. The District Court may inspect supervise and give necessary direction to its subordinate judicial bodies. The local-level judicial bodies are subordinated to the District Court.

Jurisdiction of District Court

• The District Court shall have the power to originally try and settle all cases under its jurisdiction,
• The District Court can try petitions under law, including petitions of habeas corpus and prohibition.
• The district court may hear appeals from the decisions made by quasi-judicial bodies, and hear appeals from decisions made by local-level judicial bodies.
• The District Court may institute contempt proceedings and punish for contempt under federal law if anyone makes obstruction in the dispensation of justice or disregards any order or judgment.

Other specialized courts and tribunals in Nepal

Special Court

The Special Court in Nepal is a judicial body established by the Special Court Act 2002 to deal with specific types of cases requiring specialized legal expertise. It is located in Kathmandu, and it acts as a court of first instance, competent to try significant cases related to corruption, money laundering, and misuse of authority. It works in close cooperation with bodies such as the Commission for the Investigation of Abuse of Authority and the Department of Money Laundering Investigation. Its principal cases include corruption amongst public servants, financial offenses, misappropriation of public funds, and other offenses covered under special acts.

By addressing the complex cases of high impact on society, the Special Court contributes to increased accountability, transparency, and the rule of law in the governance and financial systems of Nepal. Appeals from the Special Court go to the Supreme Court.

Jurisdiction of Special court

• Cases of Corruption and Abuse of Power by Public Officials: Diversion of Public Funds, Money Laundering and Financial Crimes
• Offenses under the Money Laundering Prevention Act: Investigation and prosecution of illicit financial transactions
• Offences by Public Officials: Criminal misconduct or breach of duty by persons in official capacities
• Cases involving very serious corporate fraud or economic misconduct
• Appeals from Investigative Agencies: Cases referred from the Commission for the Investigation of Abuse of Authority and the Department of Money Laundering Investigation.

Labor Court

The Labor Court in Nepal is a specialized judicial body established to handle disputes related to employment and labor rights. Regulated by the Labor Act 2017, it ensures the protection of workers' rights while maintaining a fair balance between employers and employees. The court deals with cases such as wrongful termination, wage disputes, workplace discrimination, occupational safety, and violations of employment contracts. It is also concerned with trade union rights, collective bargaining, and compensation in case of injuries at the workplace.

Jurisdiction of Labor Court

• Employment Termination: Cases involving unlawful or unfair dismissal, Retrenchment, layoffs, redundancy
• Wages and Benefits: Nonpayment of wages, overtime, and other benefits,Illegal deductions or non-payment of salary
• Working Conditions: Cases of violation of workplace health and safety, Workplace harassment, discrimination, and unfair labor practice
• Trade Union and Collective Bargaining: Trade union registration and recognition, Disputes arising from the collective bargaining processes
• Contractual Disputes: Breach of contract, employment agreement, Determination of Employer and Employee Obligations.
• Workers' Compensation and Workplace Injuries: Claims relating to occupational injuries or illnesses, Claims for compensation due to on-the-job deaths or disabilities.
• Industrial Actions: Legality of strikes, lockouts, and other industrial actions.

Revenue Tribunal

The Revenue Tribunal of Nepal is a special judicial entity that was constituted to adjudicate disputes arising in revenue and taxation matters. Under the Revenue Tribunal Act 1974, the tribunal is supposed to settle fairly the disputes arising between the taxpayers and government revenue authorities. The tribunal generally hears appeals filed against the decisions made by tax officers and departments on income tax, customs duties, VAT, excise duties, and property valuation. The Revenue Tribunal, situated in Kathmandu, is the appellate body for providing an equal opportunity to the taxpayer on the challenge administratively decided cases. Its jurisdictions are related to disputes on the assessment of tax, penalties, fines, and interpretations of revenue laws. Appeals from the tribunal can be taken to the Supreme Court for further review.

Jurisdiction of Revenue Tribunal

• Appeals Against Tax Decisions: The Revenue Tribunal hears appeals against decisions made by the Revenue Department or tax authorities regarding the assessment and collection of taxes, including income tax, VAT, customs duties, excise duties, and property tax.
• Tax Assessments and Penalties: It deals with disputes related to the assessment of taxes, imposition of penalties, fines, or interest on unpaid taxes.
• Tax Refund and Exemption: The tribunal addresses problems of refund, exemption, or rebate refused by the tax authorities.
• Customs and Excise Matters: It adjudicates disputes relating to classification, valuation, or exemption of goods for customs or excise purposes.
• Tax Law Interpretation: The Tribunal also interprets and resolves disputes arising from the application and understanding of the Revenue Laws and Rules.

Debt Recovery Tribunal

The DRT is established under the Debt Recovery Tribunal Act 2002 . The Tribunal shall have powers to adjudicate upon applications involving the recovery of debt outstanding, including secured and unsecured debts relating to overdue loans, credit facilities, and other financial transactions by and between the borrowers and lenders including banks and microfinance institutions. The DRT is designed to speed up the process of recovering debts, which would be faster than the normal court procedures. It also offers a chance for both borrowers and lenders to settle issues outside the normal court system, thus helping to maintain financial stability in Nepal's banking sector. Appeals from the DRT can be taken to the Appellate Court for further review.

Jurisdiction of Debt Recovery Tribunal

• Recovery of Non-Performing Loans (NPLs): The DRT deals with cases filed by banks, financial institutions, or creditors for the recovery of overdue loans, which also include secured and unsecured loans.
• Secured Debt Cases: The tribunal has powers to adjudicate cases involving debts owed with collateral, either in the form of property or assets, and ensures due process in the event of repossession or sale of collateral.
• Financial Institutions and Borrowers: The DRT deals with disputes between financial institutions, such as banks or microfinance, and borrowers, either persons or enterprises, overdue loans or payments in arrears.
• Business and Individual Credit Recovery It deals with disputes involving bad credit facilities extended to businesses, corporations, or individual persons to ensure a speedy and more effective recovery process.
• Debt Recovery Procedure: The DRT can pass appropriate orders for recovery, including orders for the attachment of wages or the sale of any property to cover debts.
• Mediation and Settlement: The tribunal also offers mediation services to help borrowers and creditors settle disputes amicably before proceeding with formal recovery actions.

Therefore, the hierarchy of the judiciary in Nepal includes the Supreme Court, High Court, District Court, and other courts and tribunals for conducting an effective and orderly dispensation of justice over various legal disputes. Each of these courts and tribunals enjoys separate jurisdictions, which also reflects their specific functions and roles. Whereas the Supreme Court is the highest authority in constitutional and legal interpretation, the High Court and District Courts are the appellate and original courts. There are also special courts and tribunals to handle complicated cases that require special expertise, such as the Special Court, Labor Court, Revenue Tribunal, and Debt Recovery Tribunal. Together, these bodies are entrusted with the rule of law, access to justice, and overall fairness and transparency in Nepal's legal and governance systems.