Hierarchy and Jurisdiction of Courts and Tribunals in Nepal

The court system in Nepal is structured to ensure effective dispensation of justice across various levels of legal disputes. The Constitution of Nepal, under Article 127(1), clearly defines the three tiers of courts:

In addition to these, Nepal has specialized courts and tribunals established to address particular legal areas with expertise and efficiency.

Supreme Court: The Highest Judicial Authority in Nepal

The Supreme Court stands as the Nation’s final and highest court. As stated in Article 128 of the Constitution of Nepal, the Supreme Court holds the ultimate power to interpret the Constitution and all laws. All courts and judicial bodies in Nepal operate under the supervision of the Supreme Court.

The Supreme Court has extensive authority, including:

• Inspecting, supervising, and directing lower courts and judicial bodies to ensure proper judicial administration.

• Issuing binding interpretations of the Constitution and laws that must be followed by all.

• Initiating proceedings and punishing contempt if anyone obstructs justice or disrespects its orders.

Jurisdiction of the Supreme Court

• Citizens can petition the Supreme Court to declare any law unconstitutional if it unreasonably restricts fundamental rights guaranteed by the Constitution.

• The Supreme Court can issue writs such as Habeas corpus, Mandamus, Certiorari, Prohibition, and Quo warranto.

• It has the authority to try and settle cases, hear appeals, revise judgments, and review its own decisions.

• It also handles appeals from High Courts and matters of significant public interest involving constitutional questions.

High Court: The Second-Tier Judiciary

The High Court is the intermediate appellate court established in each state, as provided in Article 139 of the Constitution. It plays a critical role in upholding justice and protecting fundamental rights.

Jurisdiction of the High Court

• Enforcement of fundamental and legal rights through appropriate orders and writs.

• Power to try cases originally, hear appeals, and confirm judgments from lower courts.

• Authority to punish for contempt if justice is obstructed or court orders are ignored.

District Court: The Primary Trial Court

The District Court is the third level in Nepal’s judicial hierarchy, with at least one court in each district, as per Article 148 of the Constitution. District Courts oversee local judicial administration and supervise subordinate judicial bodies at the local level.

Jurisdiction of District Courts

• Original jurisdiction to try and settle cases within its area.

• Authority to hear petitions, including habeas corpus and prohibition.

• Hearing appeals from quasi-judicial and local judicial bodies.

• Power to institute contempt proceedings for obstruction of justice or disobedience of court orders.

Specialized Courts and Tribunals in Nepal

To handle complex or specialized cases requiring particular legal knowledge, Nepal has established various specialized courts and tribunals alongside the three-tier court system.

Special Court: Handling Corruption and Financial Crimes

Established under the Special Court Act 2002, the Special Court focuses on significant cases of corruption, money laundering, and abuse of authority. It works closely with investigative agencies such as the Commission for the Investigation of Abuse of Authority (CIAA) and the Department of Money Laundering Investigation.

Jurisdiction includes:

• Corruption cases involving public officials.

• Financial crimes, corporate fraud, and economic misconduct.

• Appeals from investigative bodies, with further appeals going to the Supreme Court.

Labor Court: Protecting Workers’ Rights

The Labor Court operates under the Labor Act 2017, addressing disputes between employers and employees to ensure fair labor practices and rights protection.

Jurisdiction covers:

• Employment termination disputes, including wrongful dismissal and layoffs.

• Wage and benefit claims, workplace safety, harassment, and discrimination.

• Trade union rights, collective bargaining disputes, and industrial actions.

• Workers’ compensation and workplace injury claims.

Revenue Tribunal: Resolving Tax Disputes

Created under the Revenue Tribunal Act 1974, the Revenue Tribunal settles tax-related disputes between taxpayers and government revenue authorities.

Key areas include:

• Appeals against tax assessments, penalties, and fines related to income tax, VAT, customs duties, and excise duties.

• Tax refunds, exemptions, and disputes over customs and excise valuation.

• Interpretation of tax laws, with appeals from the tribunal going to the Supreme Court.

Debt Recovery Tribunal (DRT): Expedited Debt Resolution

Established under the Debt Recovery Tribunal Act 2002, the DRT facilitates the quick recovery of overdue loans and credit defaults, improving financial stability.

Jurisdiction involves:

• Recovery of non-performing loans, including secured and unsecured debts.

• Adjudication of disputes between borrowers and financial institutions like banks and microfinance.

• Authority to pass orders for asset attachment or sale to recover debts.

• Providing mediation services to amicably resolve disputes.

Judicial Structure and Effective Justice in Nepal

Nepal’s judiciary is organized to deliver justice through a clear hierarchy:

• The Supreme Court acts as the apex judicial authority with final constitutional interpretation powers.

• The High Courts serve as appellate courts with original jurisdiction in many cases.

• District Courts act as the primary courts of first instance at the local level.

• Specialized courts and tribunals handle niche cases such as corruption, labor disputes, tax matters, and debt recovery.

Together, this system ensures the rule of law, transparency, and access to justice across the country, safeguarding the rights of citizens and maintaining legal order.