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Chapter-5 Fund and audit

26. Fund of Academy:

(1) The Academy shall have a separate fund of its
own.
(2) The fund as referred to in Sub-section (1) shall consist of the
following amounts:
(a) Amounts received from the Government of Nepal,
(b) Amounts received from any foreign government,
organization or person,
(c) Amounts received from any native organization or
person,
(d) Amounts received in consideration for any services
provided by the Academy, and
(e) Amounts received from any other sources.
(3) Prior to receiving amounts as referred to in Clause (b) of Subsection
(2), the Academy shall obtain approval of the Government of
Nepal.

(4) The moneys of the fund of the Academy shall be deposited in an
account opened with a bank as designated by the Academy.
(5) The fund and account of the Academy shall be operated as
prescribed.
(6) All the expenditures of the Academy shall be chargeable on the
fund as referred to in Sub-section (1).

27. Accounts and audit: (1) The accounts of the incomes and expenditures
of the Academy shall be maintained in accordance with the procedures
followed by the Government of Nepal.
(2) The audit of accounts of the Academy shall be performed by the
Auditor General.

Chapter-6 Miscellaneous

28. Honourary academician and life-long membership: (1) The
Assembly may, on the recommendation of the Council, grant the honourary
academician of the Academy to any native or foreign person who, having
rendered significant contribution to the development of fine arts, elevated
the glory/prestige of Nepal at the national and international sectors.
(2) The Assembly may grant the life-long membership of the

Academy to a citizen of Nepal who has rendered significant contribution to
the discipline of fine arts.
(3) The grounds for granting the honourary academician and lifelong
membership pursuant to Sub-sections (1) and (2) shall be as
prescribed.

(4) The Academy may provide such facilities as may be prescribed
to the life-long members.
Provided that, any life-long member who is getting any
remuneration or facility from the Government of Nepal shall not be entitled
to such facilities.
(5) The Assembly may remove any honourary academician and lifelong
member from membership in the prescribed circumstance.

29. Power to grant honour, reverence and prize: The Assembly may
grant honour, reverence and prize to a person who has rendered significant
contribution to the discipline of fine arts.
30. Annual report to be submitted: The Academy shall submit to the
Government of Nepal an annual report of activities carried out by it each
year.

31. Oath: Prior to assuming their duties, the Chancellor shall take an oath
before the Prime Minister and the Vice-chancellor, secretary and member
of the Assembly shall take an oath before the Chancellor in the form as set
forth in the Schedule.

32. Delegation of powers:

(1) The Assembly may, as required, delegate any
of the powers conferred to it under this Act or the Rules framed under this
Act to the Council.

(2) The Council may, as required, delegate any of the powers
conferred to it under this Act or the Rules framed under this Act to the
Chancellor, Vice-chancellor or Secretary.
(3) The Chancellor may, as required, delegate any of the powers
conferred to him or her under this Act or the Rules framed under this Act to
the Vice-chancellor or Secretary.

(4) The Vice-chancellor may, as required, delegate any of the
powers conferred to him or her under this Act or the Rules framed under
this Act to the Secretary.

33. Logo: The logo of the Academy shall be as prescribed.

34. Liaison Ministry: Ministry of Culture, Tourism and Civil Aviation shall
liaison the Academy with the Government of Nepal.

35. Powers to frame Rules: The Academy may frame necessary Rules for
the implementation of the objectives of this Act.
Provided that, in making Rules on matters involving financial
burden on the Government of Nepal, prior approval of the Government of
Nepal shall be obtained.

Schedule

Oath
I…………………… promise with truth and faith/swear in the name of God that I
shall honestly perform my duties in the capacity of …….., subject to the laws in
force and without fear of any one, without partiality and inclination or bad
intention towards any one, giving high recognition to the aspirations expressed
through the Popular Movement by the people that the state authority and
sovereignty of Nepal be vested in the Nepalese people only and being fully loyal
to the Interim Constitution of Nepal, 2063 (2007) providing for the exercise of all
powers of the State of Nepal by the Legislature-Parliament, and that I shall not
disclose or indicate, or cause to be disclosed or indicated, in any manner, any
information known to me in the course of performance of my duties except in the
course of observance of the laws in force, in any circumstance whether holding
office or ceasing to hold office.
Date:
Name:
Signature:

Preamble

An Act made to provide for levying court fees

Preamble: Whereas, the Nepal law on the provision of court fees previously existing has applied only to the Kathmandu Valley is not adequate and it is expedient to apply it also to other areas of …………..Nepal1 , in order to maintain order for the public interest and maintain the convenience of the citizens of ……………Nepal2 ; Now, therefore, be it enacted and enforced by the Parliament in the Sixth year of reign of His Majesty King Mahendra Bir Bikram Shah Dev.

Chapter-1 Preliminary

Chapter-1 Preliminary

1. Short title, extension and commencement:

(1) This Act may be called as the “Nepal Court Fees Act, 2017 (1960)”. (2) This Act shall extend throughout ………Nepal3 . (3) Sections 1 and 26, and Sub-section

(2) of Section 4 of this Act shall come into force immediately and the other Sections and Sub-sections shall come into force in such areas and on such dates as the Government of Nepal may appoint, by a Notification in the Nepal Gazette.4 2. Definitions: Unless the subject or the context otherwise requires, in this Act,

(a) ” Court fee” means such a fee as is chargeable and collected by a court along with a plaint, complaint or appeal and with a petition for review or revision as specified in this Act.

(b) ………..5

(c) …………6

(d) “Suit (Nalesh)” means a plaint (Phiradpatra).

(e) “Complaint” means a submission for the institution of a case originally, by a petition, instead of a plaint.

(f) “Court” means and includes the bench of an office or individual authorized to carry out the functions of a court.

(g) “Tax (Tiro)” means the land revenue or land tax.

Chapter-2 Amount in question and offence to be set out

Chapter-2 Amount in question and offence to be set out

3. Case not to be filed without payment of court fee: Except as otherwise mentioned in the other Sections of this Act, no court shall take a suit or complaint or memorandum of appeal or petition for review or revision, and proceed with the same without collecting the court fee as specified by this Act.

4. Matters to be set out in making plaint or complaint:

(1) In making a suit or complaint of a case chargeable with court fees pursuant to this Act, no suit or complaint shall lie if it does not clearly set out the cash value or amount in question of the movable or immovable property where the suit or complaints claims for the entitlement or disentitlement to such a movable or immovable property or clearly set down the matter of claim where the claim is only that any matter required to be done has not been done or any matter required not to be done has been done or about to be done by another person. Provided that:

(1) In relation to a case for the execution and provision of partition, a suit shall lie even if it does not set out the amount in question. After it is found that partition has to be executed, the amount in question/value shall be fixed upon taking an inventory of the partition share to be partitioned indicating its value and amount in accordance with the Nepal law and the court fees shall be collected accordingly.

(2) Where, while making a suit or complaint, only a claim that another person has not done any matter required to be done or has done or is going to do any matter required not to be done has been made in the beginning but it is required subsequently to settle (Taikat) also the matter involving the provision and recovery of a value and amount in question, such a case shall not be tried without payment of the chargeable court fees in relation to such a value and amount in question. (2)7 In setting out the value and amount in question pursuant to subsection (1), the value and amount in question shall be fixed as follows in the case of a land or other immovable property:

(a) The value/price, if any, determined by the Government of Nepal for the purpose of determining the registration fee or amount of tax. Provided that, where such a land or other immovable property has been purchased and sold and the price of the purchase and sale exceeds the value determined for the purpose of registration fee or amount of tax, the court fees shall be levied according to the value or price set while making such a purchase and sale.

(b) Where the value/price is not determined pursuant to Clause (a) nor is the price of sale and purchase is set out, the locally prevailing value.

Chapter-3 Determination of amount in question and rate of court fees

Chapter-3 Determination of amount in question and rate of court fees

5. Determination of value, amount in question: While determining the value, amount in question in order to collect court fees, the value, amount in question shall be determined as follows, in the following matters including the matter of claim made by the plaintiff or for release from claim:-

(a) Where the claim is for entitlement to cash or for disentitlement to cash, according to the figure of cash as entitlement to which has to be established or de-established,

(b) Where the claim is for the recovery of gold, silver, ornaments (Jawaharat), utensils, livestock, grains, timber etc. movable property or the disentitlement of a claim thereon, according to the figure upon determining the value and amount in question of the property at the rate of the property in question prevailing at the local village or market,

Explanation: 8 If there arise any dispute as to the local village or market price of the gold, silver or ornaments, the value or price determined by any other bank or financial institution recognized by the Nepal Rastra Bank or the Government of Nepal shall prevail.

(c) In relation to goods of which selling price or value is not prevailing at the local village or market, according to the figure of value or amount in question determined by the plaintiff,

(d) Where a claim is made on entitlement to an immovable property or land or on disentitlement of right in such property, according to the figure of value or amount in question as determined by the suit or complaint maker pursuant to Sub-section (2) of Section 4,

(e) Where a claim is made on disentitlement of a secured farmer to the right of secured farmer, half the value, amount in question of the land as determined pursuant to Clause (d) shall be considered as its value or amount in question, and according to that figure,

(f) …………….9

(g) …………….10

(h) ……………11

(i) Where a claim is made for crops yields of a land cultivated on half crop-sharing basis or for disclaimer, according to the figure of income of the half crops of a previous year in which a divine act (Daibi) did not occur,

(k) In a case claiming that the half crops of the land suffering a divine act were not remitted, according to the figure, if any, specified that the same need not be paid,

(l) Where a claim is made for a house (building), cartilage and crop income, as well, or for disentitlement of right therein, according to the value of the house at the rate prevailing at the local village, market and the value as per that set forth in Clause (d) in the case of cartilage and according to the claimed amount of crop income,

(m) ……………….12

(n) ………………13

(o) ………………..14

(p) In a case requesting for the remission of any thing other than the crops of a land, according to the figure of amount in question requested for remission,

(q) In a case requesting for entitlement to the function of Guthi, Mahantyai, priest, store in-charge (Bhandare), Tahaluwa, server (Susare) etc. or for disentitlement of right claimed therein or for dismissal from the function, according to the figure of the residue or surplus receivable upon operation of the Guthi, and where claim is made for other, according to the value, amount in question of the land where the land is assigned and that of one year’s income receivable where the land is not assigned,

(r) In a case claiming that a land was disentitled in an unauthorized manner or that a land to which one is entitled was provided to another, according to the figure of tenant’s share in crops (Mohiboti) of one year,

(s) Where a claim is made that in making eviction (Pajani) of land, the land was given to another, which should have been given to him or her, according to the figure of such value of the claimed land as to be set pursuant to Clause (d),

(t) Where a claim is made that eviction of land was made by an unauthorized person (Betaluk), according to the figure of such value of the land as to be set pursuant to Clause (d),

(u) Where a claim is made for entitlement to a contract amount or for disentitlement of right therein, according to the figure of contract amount for the years as so claimed and where a claim is made against the loss of income, according to the figure of the loss of income as claimed,

(v) The price or valuation of a mortgaged (Bandhaki) land etc. the right or claim in which has not been given up shall be set as the amount in question, and according to that figure,

(w) In a case involving a suit by a debtor for insolvency (Damashahi) or specification of a repayment date (Bhakha), according to the figure of the amount in question indicated by the debtor,

(x) In a case claiming that one has not paid or received a salary, allowance, installment, food allowance, Jyuni, alimony (Manachawal) or that the same should be allowed not to be paid, where a land is claimed or claim is made that one be allowed not to pay the same, according to the figure of the value to be set pursuant to Clause (d) in the case of land, and according to the figure of the value claimed where other cash or in-kind has been claimed,

(y) In a case claiming that one has not paid or received a salary, allowance, installment, food allowance, Jyuni, alimony or that arrangement be made for the non-payment of the same, according to the figure thereof for one year, upon determining such figure,

(z) Where a claim is made for wages loss (damage) or compensation, according to the amount in question so claimed and in a case requesting for authorization for the non-payment of the same, according to the figure of the amount in question so requested for authorization for non-payment,

(aa) Where a claim is made for, Naso deposit or guarantee, according to the amount in question so claimed and in a case requesting for authorization for the non-payment of the same, according to the figure of the amount in question so requested for authorization for non-payment,

(bb) Where many matters including principal, profit, interest, land crops, yields, house, shop, rent thereof and movable and immovable property, cash, in-kind are claimed or a request is made for ordering non-payment of the same, according to the figure of the price, value to be set pursuant to Clause (d) in the case of land, and according to the figure of price and amount in question thereof in the case of other sum, profit, interest, rent, income, cash and in-kind,

(cc) Where a suit or complaint is made claiming principal and interest as well, court fees shall be charged according to the figure of interest to be accrued up to the date of such a suit or complaint, and if the interest is recoverable thereafter and up to the date of judgment, court fees chargeable on the interest from the date of making of the plaint or complaint to the date of final judgment shall be recovered when the amount in question is recovered,

(dd) In determining the amount in question of the goods the recovery whereof is requested for by making a suit or complaint as per the rate prevailing at the local village or market, then the value or amount in question thereof shall be set out in the complaint at the rate prevailing at the place of payment where a deed or contract is available to the effect that payment thereof shall be made at that place at the rate prevailing at the time of making suit, and failing such a contract, as per the rate prevailing at the village or market of the place where the price is fixed or of the place where it has to be to be received or taken and court fees collected accordingly; and if the price or value so set out seems doubtful, the suit or complaint hearing authority may ascertain the matter upon inquiring thereinto,

(ee) Where a claim is made for the establishment of right in a land or for the registration or transmission of a land or voiding the registration or transmission of a land, court fees shall be charged according to the figure of the value or amount in question of the land to be set pursuant to Clause (d), in the case of claim for the establishment of the right in the land, and court fee of One Hundred Rupees15 shall be charged in the case of the claim for the registration or transmission or voiding the registration, transmission.

6. Rate of court fee: In hearing a suit in a case charged with the court fee, there shall be charged the court fee as follows: (a) In a case involving a claim in, or request for disentitlement of claim in,……….16 in accordance with the following in each case according to the figure of value or amount in question:

(1) ……………17

(2) 18 Rs.100.00 (One Hundred Rupees) for the first Rs. 2,000.00 (Two Thousand Rupees),

(3) Up to Rs.25,000.00 (Twenty-five Thousand Rupees), at the rate of Four percent for the second up to Rs. 23,000.00 (Thirty Three Thousand Rupees),

(4) Up to Rs.100,000.00 (One Hundred Thousand Rupees), at the rate of Three percent for the third up to Rs. 75,000.00 (Seventy Five Thousand Rupees),

(5) Up to Rs.250,000.00 (Two Hundred Fifty Thousand Rupees), at the rate of Two percent for the fourth up to Rs. 150,000.00 (One Hundred Fifty Thousand Rupees),

(6) In the case of more than Rs.250,000.00 (Two Hundred Fifty Thousand Rupees), at the rate of One and half percent for the over and above figure.

(b) In the following cases where the amount in question is not set out, and despite that the amount in question is set out, the prevailing law provides for specific punishment but not according to the value or amount in question and where punishment is imposable at the discretion according to offence, the following court fees in relation to each case:

(1) Rs. 1,00.00 (One Hundred Rupees) 19 in relation to each case requesting for the establishment of the figure of partition share only, without involving the recovery of partition, or for settlement without establishing the right in partition or for ascertaining the portion of share only,

(2) Rs. 1,00.00 (One Hundred Rupees) 20 in relation to each case, also out of the following cases:

(1) Requesting for the voidance of bonds, deeds,

(2) Claiming that a deed executed in household and required to be registered has not been caused to be registered, and requesting for the execution of registration thereof,

(3) Claiming that a receipt was not given upon payment, and requesting for the execution of the receipt thereof,

(4) Claiming that a bond, deed of date of repayment (Bhakapatra), guarantee letter (Jamanipatra), bond, receipt etc, was not voided upon the completion of act of receiving and giving or that a receipt was not given,

(5) Requesting for the eviction of any person staying in a land, house or shop or for an order against the eviction,

(6) Claiming that counterpart (Dohori) documents duplicates required to have been made were not made and requesting for the execution of the same,

(7) Requesting that amount be recalculated, upon being dissatisfied with the amount calculated,

(8) Claiming that one has not been allowed to make a barrage, ditch or course or to carry water through the same or that another person has not been involved in making the same,

(9) Claiming that one has not been allowed to irrigate a land with the water carried through a barrage, ditch or course,

(10) Claiming that, in irrigating a land, one should have done so in according to roll order, but one whose turn is later has taken water and irrigated one’s land earlier, and then requesting for an order requiring irrigation of land according to roll order or that water be provided,

(11) Claiming that one has closed or not allowed to open an exit, door, veranda, passage, window, and then requesting that the same be ordered to be opened or closed,

(12) Claiming that one has not allowed to install an window, door, veranda, exit and add a storey, and then requesting that the complaint be allowed to install the same or that the exit be closed,

(13) Claiming that registration, transmission be effected or the effected registration, transmission be voided, without a claim for the establishment of the right in a land, and

(14) Requesting for the issuance of an injunction ordering someone to refrain from doing a specific act. (3) 21 Notwithstanding anything contained in Clause (2), where the right in any movable or immovable property has to be established or de-established by the plea of the defendant or opponent, the court fee as referred to in Clause (a) shall be charged.

(c) Where, on a suit or complaint of partition case requesting for the execution of partition by taking an inventory of properties (Tayadati) because of the amount in question not being set out, after it is held that one is entitled to partition and the amount in question is set out upon taking the inventory of properties, the court fee shall be charged according to the amount in question. Deduction shall be made from the court fees paid in making a suit as referred to in Subclause (1) of Clause (b), and the shortfall shall be recovered subsequently, and surplus amount, if any, shall be refunded.

(d) Even in relation to a case tried summarily (Thado Karbahi) by a complaint, it shall be filed only upon collecting the court fee as if a suit were filed. No such complaint shall be tried if the court fee is not paid.

(e) The whole court fee shall be charged even in relation to a suit or complaint made by or against a woman or minor.

7. Provisions on levying court fee in some cases: (1) Where it appears that, if the claim made by the plaintiff on the same suit is sustained, one or more than one defendant are liable to punishment according to the value or amount in question and one or more than one defendant are liable to punishment according to the offence or to both punishments, the court fee shall be levied according to the figure of the value, amount in question in the case of punishment to be imposed according to the value, amount in question, according to the punishment of offence in the case of punishment to be imposed according to the offence, and according to that of both in the case of both punishments to be imposed.

(2) Where a suit or complaint is made for the provision of partition and the amount in question of some is set out and that of some is not set out, the whole court fee shall be levied to the extent of the amount in question so set out, and the court fee of One Hundred Rupees shall be levied in relation to that portion of which amount in question is not set out, and the remaining shall be recovered subsequently as mentioned in Clause (c) of Section 6.

(3) If, in collecting the court fee, some denomination less than Paisa has also to be collected according to the calculation of the court fee, such denomination shall not be collected.

8. Fee for statement of defense (Pratiuttar Patra): In making a statement of defense on a case chargeable with the court fee, the fee for the statement of defense leviable pursuant to the prevailing law cannot be waived, and on a case in which a statement of defense is not required to be made and which is inquired summarily (Thado Karbhi), the fee for the statement of defendant is not chargeable on the defendant.

Chapter-4 Exemption and non-exemption of punishment

Chapter-4 Exemption and non-exemption of punishment

9. Punishment not required to be imposed: In a case chargeable with the court fee pursuant to this Act, no punishment imposable by the other prevailing law, other than the punishment that cannot be exempted by virtue of Section 10, shall be imposed. If the plaintiff wins the case, the plaintiff shall be entitled to the recovery of such court fee, as well as the amount in question, paid or held to be payable by the plaintiff as held recoverable by the plaintiff from the losing defendant. If the plaintiff loses the case, the plaintiff shall not be entitled to have the recovery of the court fee paid by him or her from the defendant; and where the case has been filed without collection of the court fee or without collection of the whole court fee, then judgment has to be made that the court fee that remains recoverable upon deducting the paid court fee be recoverable from the party who is liable to pay the same pursuant to this Act and recovery thereof shall be made in accordance with this Act.

10. Punishment cannot be exempted despite payment of court fee: (1) In spite of the court fee being chargeable, no punishment imposable for omission to do any act required to be done under, or for doing any act prohibited by, or default on giving any thing required to be given by, the prevailing Nepal law, including the matters set forth below shall be exempted:

(a) Punishment as referred to in law imposable on a person who makes a suit or complaint that can be made pursuant to the prevailing law, but upon producing a document that does not meet the requirements prescribed by the prevailing law.

(b) Punishment imposable on a person who fails to give a counterpart (Dohori) document or slip as required to be given or otherwise makes difference in witness and contents in a counterpart document.

(2) If the prevailing Nepal law provides for punishment to the publicly inquired persons who have been subpoenaed for evidence on a case chargeable with the court fee for having made false deposition (perjury), or being failure to appear within the time-limit, such punishment cannot be exempted.

(3) Any punishment imposable by the prevailing law on a person who, consequent to a judgment on a case chargeable with the court fee, does not do any act required to be done pursuant to the prevailing law, or causes obstruction in the recovery of the amount in question, in the foreclosure and does any forceful act in that course and conceals property cannot be exempted.

11. When case is dismissed, canceled or compromised:

(1) No fee for compromise (Baksauni) shall be charged on a case filed upon paying, or on the condition of the payment of, the whole court fee, and if that case is dismissed, canceled (Kharej), no punishment shall be imposed for the same.

(2) Where a case chargeable with the court fee has been filed without collecting the court fee is to be compromised in accordance with the prevailing law, compromise can be executed only upon collecting the remaining shortfall court fee, upon deducting the court fee paid from the court fee chargeable on the matters to be compromised payment, from the plaintiff or appellant. Where a case is dismissed or canceled (Kharej), the remaining shortfall court fee, upon deducting the court fee paid from the court fee chargeable pursuant to this Act, shall be recovered from the plaintiff or appellant in accordance with this Act.

(3) Despite that a case is dismissed or canceled after the filing of the case upon charging the court fee or subject to the payment of the court fee, no court fee already collected or about to be collected can be refunded or waived in any case. However, where such a case is compromised, only half the total figure of the court fee chargeable by this Act shall be collected, and surplus court fee collected, if any, shall be refunded and the remaining, if any, unchargeable shall be remitted. Provided that, in the event of cancellation of a case, if the case could not be instituted by the very writing of the suit or complaint but it appears that the case was filed by collecting the court fee by mistake of the court, the court fee remaining upon deducting the suit fee (Nales Dastur) chargeable pursuant to the prevailing law22 shall be refunded.

(4) Where a case which has already been dismissed, canceled or compromised in accordance with the procedures prescribed by law is revived in any manner and retried by a complaint of the litigant, the litigant on the complaint of whom the case is so retried shall pay again the court fee chargeable by this Act at the original or appellate level at which the case is being tried.

12. Security chargeable for giving attorney not to be collected: If, on a case chargeable with the court fee, in which attorney may be appointed, any attorney is appointed by the plaintiff or defendant or both, no security chargeable by the prevailing Nepal law for appointing the attorney shall be collected.

13. 23 Ten percent fee, Five percent fee and Jitauri: (1) Where Ten percent (Dashaud) fee is chargeable by the prevailing Nepal law in executing the recovery of the amount in question or foreclosure, no Ten percent fee shall be collected on a case charged with the court fee. 24Provided that, in the case of a party in relation to whom the case trying officer or judge has executed a memorandum pursuant to Section 23 to the effect that the party is not able to pay the court fee, no fee as referred to in this Sub-section shall be collected from that party in executing the recovery of the amount in question valued up to Rs. 5,000.00 (Five Thousand Rupees) or in foreclosing any property valued up to Rs. 5,000.00 (Five Thousand Rupees).

(2) No Jitauri and royalty (Salami) chargeable by the prevailing Nepal law shall be collected on a case charged with the court fee. (3) No Ten percent fee chargeable by the prevailing Nepal law shall be collected while executing the recovery of the amount in question or foreclosing any property on a case charged with the court fee.

Chapter-5 Provisions on collection of less or more court fee

14. Provisions relating to where suit or complaint or memorandum of appeal mentions lesser court fee and where more court fee is collected:

(1) A case chargeable with the court fee shall be filed by collecting the chargeable court fee by determining the value, amount in question according to what is mentioned in the suit or memorandum of appeal tendered for filing or in a complaint or statement on a case tried summarily or directly.

(2) Where a party, with intent to pay less court fee, does not show the correct value, amount in question but shows more value, amount in question, and a complaint is filed on that matter and upon an inquiry into the matter, it is so held, the shortfall court fee shall be collected subsequently in accordance with Sub-section (10), and the party shall also be punished in accordance with this Act.

(3) Where it appears that the party tenders lesser court fee than that chargeable according to the writing of a suit, complaint or memorandum of appeal filed on a case chargeable with the court fee, the case can be filed only upon payment of the shortfall court fee. If the party, being unable to pay the court fee, makes a submission for a time-limit for payment of the same and the period of limitation for making suit, complaint or appeal is less than Fifteen days, the court may extend the time for up to Fifteen days running from that remaining period. In the event of failure to pay the court fee within that time-limit, no suit or memorandum of appeal or complaint shall lie.

(4) If the court knows in any manner or it is held, after the filing of case, that the court fee that is lesser than that to be collected according to the writing of a suit, complaint or memorandum of appeal has been collected or paid, the court shall give an order slip to the concerned party to pay the short fall amount of court fee within a time-limit not exceeding Fifteen days. In the event of failure to pay the court fee, the court shall void the suit or complaint or memorandum of appeal.

(5)25 If it appears that more court fee than that required has been collected from any litigant, the excess court fee shall be refunded to the litigant in accordance with this Act. In having the recovery of the court fee by a litigant who has filed a suit on payment of the court fee and won the case from the losing litigant, that winning litigant is entitled to the recovery of only the court fee that is chargeable on the case. In refunding the court fee upon finding that more court fee has been paid, a memorandum shall be executed indicating that such-and-such amount has been paid instead of such-and-such as chargeable and such-and-such excess is to be refunded, and recorded in the case-file.

(6) Where, after the collection of the court fee by determining the value, amount in question according to the writing set down by the plaintiff or appellant, a complaint is made that lesser court fee has been charged or though a complaint is not made, more value, amount in question appears from the evidence recorded on the case-file, and it appears that lesser value, amount in question is shown in order to charge lesser court fee, adjudicating authority or judge shall personally or through other employee subordinate to him or her determine or cause to be determined again the court fee of such lesser value, amount in question, 26 and take action, pursuant to Sub-section (10), against one who has shown such lesser value, amount in question for having shown the value, amount in question of lesser court fee, and the case cannot be instituted and shall be canceled in the event of failure to pay the shortfall court fee within the time-limit specified pursuant to Sub-section (3).

 

(7) Where, on a suit or complaint made indicating the value, amount in question, for making partition, the court fee has been charged according to the value, amount in question as so indicated and shown but when having execution of the recovery of partition share, the party is entitled to more partition share than that so indicated and shown, the remaining court fee shall be recovered at the time of executing the recovery of partition share, after the judgment on the case.

(8) In examining the case-file by the official empowered to do so or also by the appeal hearing official on a case appealed, such official shall examine whether the required court fee has been collected or not, and if it appears that lesser court fee has been collected, such official shall order to collect the shortfall court fee from the plaintiff or appellant in accordance with Sub-section (3). In the event of failure to pay the court fee within the specified time-limit, such case shall be canceled (rejected). The concerned employee of the court shall be liable to action as referred to in this Subsection (14).

(9) If a party who is not satisfied with the court fee as determined by the court makes a complaint with the appeal hearing authority within Three days excluding the time required for journey where the party has not yet paid the court fee as determined and prior to the passing of judgment on the case on which the court fee has been paid where the court fee so determined has already been paid, the appeal hearing court shall inquire into the matter and ascertain the matter within the time-limit of Seven days specified for payment of the same, whichever is earlier, and punish the concerned employee of the court who has collected or determined the court fee in accordance with Sub-section (14) if it is held that more court fee has been collected or determined and punish the complainant with a fine at the rate of Fifteen percent of the figure as alleged to have been collected or determined in excess if it is held that the court fee has been collected or determined correctly and that the complaint is false. Where a suit, complaint or appeal is tendered for filing, accompanied by the court fee as held chargeable, within Three days, excluding the time required for journey, after the date of settlement of a complaint made that excess court fee has been determined, the limitation cannot expire where the suit, complaint or appeal was earlier tendered for filing with the competent court within the limitation as referred to in the prevailing law, and the official of the court shall set down that matter as well as all other required matters on the heading of the suit or complaint and sign it and file the case, and record it on case-file, accompanied by an evidence of the settlement of complaint.

(10) One who files a case showing lesser value, amount in question in order to pay lesser the court fee shall be liable to the following consequences:

(a) If, upon inquiring into the matter by a complaint of the opponent, a party is held to have shown and set down lesser value, amount in question, the party who has so shown and set down lesser value, amount in question shall, despite that the party wins the case on the judgment of the case, not be entitled to have recovery of that court fee so paid subsequently from the person who has provided that such lesser court fee has been shown and set down and lost the case.

(b) If, upon inquiring into the matter by a complaint of any person other than the opponent or also upon examining even without a complaint, a party is held to have shown and set down lesser value, amount in question in order to pay lesser court fee, the party who has so shown and set down lesser value, amount in question shall be liable to a fine of One Tenth (1/10th) of the court fee so lessened and to a fine of One Twentieth (1/20th) in the case as referred to in Clause (a).

(c) If it appears that the court itself knowingly or having reason to know has collected the court fee that is lesser than that chargeable, the plaint or appellant shall not be liable to the fine.

(11) In giving a notice process as mentioned in this Section for the payment of the short fall court fee where lesser court fee has been collected, it shall be written in the heading or margin of the notice process so given that the notice process corresponding there has been received on such-andsuch date, which shall be signed by the recipient plaintiff or appellant or his or her attorney, and where such plaintiff or appellant are not on recognizance, the notice process shall be served in accordance with the procedures to be followed while serving a process or summons, and one copy of the served notice process shall be recorded on the case file.

(12) Where the shortfall court fee so appearing has been collected or excess court fee refunded after the filing of a case upon paying the court

fee, the same matter shall be indicated in the receipt issued against collection of the court fee earlier. (13) Where a complaint is made claiming that lesser value, amount in question has been shown and set down in order to pay lesser court fee, and upon inquiring into the matter, it is not held that the value, amount in question has been so lessened, the false complainant shall be liable to a fine of Five percent of the court fee alleged to have been lessened. (14) Legal action shall be taken against the employee of the court who knowingly collects more or less court fee than that chargeable, and where the case in relation to which less court fee has been so collected has already bee adjudged finally or the time-limit for making appeal has already expired, the amount of court fee omitted shall be recovered from such person who has so omitted to collect.

Explanation: The term “knowingly” mentioned in this Sub-section means non-collection or excess collection of the court fee of the amount in question as shown from the writing of a suit or complaint or memorandum of appeal or from the evidence, in accordance with this Act.

Chapter-6 Recovery of court fee

Chapter-6 Recovery of court fee

15. Execution of recovery of court fee:

(1) If the plaintiff or appellant wins a case filed upon payment of the chargeable court fee, he or she shall be entitled to the recovery of the court fee paid by him or her from the losing party.

(2) In executing the recovery of the court fee to the plaintiff on a case containing Two or more defendants, the court fee shall be recovered, in relation to the recovery of the amount in question, according to the respective figure of amount in question to be recoverable from each of the defendants, and in relation to the disentitlement or relinquishment of right or claim, according to the amount of respective disentitlement or relinquishment from each of the defendants, and in relating to the other matters or amounts, the court fee shall be recovered on pro rata from the losing parties.

(3)27 Where a case chargeable with the court fee has been filed without payment of the court fee, the court fee as held to be chargeable on the plaintiff or appellant winning the case shall be recovered from the opposite party as a fine, penalty.

(4) Where the plaintiff or appellant makes claims on several matters and wins on some and loses on others, he or she shall not be entitled to recover the court fee on the matters lost from his or her opponent.

(5) Where the plaintiff or appellant loses a case filed without payment of the court fee or on payment of partial court fee, the chargeable court fee shall be recovered from the losing plaintiff or appellant.

(6) If the plaintiff loses a partition case filed on payment of the court fee of One Hundred Rupees28 or on payment of partial court fee, the remaining chargeable court fee shall be recovered from the plaintiff, upon deducting the collected court fee from the court fee chargeable according to the amount in question.

(7) Despite that the defendant or opponent dies prior to the recovery of the court fee recoverable to the plaintiff or appellant, the plaintiff or appellant shall be entitle to recover the same from the inheritor of such a defendant or opponent.

(8) If, on a case requesting for insolvency or giving a date for repayment, the defendant creditor agrees thereto and insolvency or a date for repayment is made or given, the plaintiff debtor shall, despite winning the case, not be entitled to have the recovery of the court fee from the defendant. If the defendant creditor pleas that insolvency or a date for repayment should not be made or given and the plaintiff wins the case, the court fee shall be caused to be recovered from the losing defendant to the plaintiff.

(9) If the plaintiff or appellant wins a partition case on which amount in question is not set out or any other case filed upon payment of partial court fee or without payment of the court fee at all and the winning plaintiff makes an application within the time-limit specified by the prevailing law, requesting for the recovery of amount in question to which he or she is entitled, the remaining court fee upon deducting the court fee already collected on filing the suit or complaint or memorandum of appeal from the property of the defendant attached for the amount in question recoverable by the plaintiff shall be recovered or realized, and the surplus amount shall be recovered to the plaintiff in consideration for the amount in question, upon collecting the fee chargeable for the court fee. Where an application is not made within the time-limit as referred to in the prevailing law for the recovery or after the application has been made for recovery the plaintiff gives up in the meantime, within Fifteen days after the expiration of the time-limit for making application or after the expiration of the time-limit for the extension of the expired appointed date for appearance after the making of application, the property of the defendant shall be attached in the sum of the court fee due and recoverable on the case, in addition to the figure of the amount in question held recoverable by the plaintiff from the defendant, and the court fee shall be recovered accordingly. The remaining court fee not recovered from the attachment of the property of the defendant shall be recovered from the attachment of the property of the plaintiff.

(10) If such court fee or fee as held recoverable by the winner from the loser or as recovered from the plaintiff himself or herself pursuant to Sub-section  (9) cannot be recovered in full from the attachment of the property of the loser, and the winner makes an application, 29 showing any property, within Two years, for the recovery of the remaining court fee or fee, and it is held that the loser has such property, the recovery of the same shall be executed as if it were the recovery of the court fee or fee originally.

(11) In requesting for the recovery of such fee, court fee, amount in question as held to be recoverable30from the loser, one application may be made for the recovery of the court fee as held to be recoverable or the fee, charge paid on the case, after the expiration of the time-limit for making appeal or after the settlement of appeal thereby ruling out the possibility of appeal complaint. Provided that such an application has to be made no later than Two years31 after the date of final judgment.

12) If the defendant who makes an appeal upon furnishing the security of the court fee held to be recoverable by the plaintiff loses and the original verdict is upheld, even though the plaintiff does not make an application for the recovery at the same time of the court fee which has been furnished as security by the defendant in making appeal as well as the amount in question and fee pursuant to Sub-section (11) but for the recovery of only the money furnished as security for the court fee in making such an appeal, the recovery shall be executed in accordance with the procedures as referred to in the prevailing Nepal law.

(13) In executing the recovery of such amount in question or court fee and other fee or charge levied on the case as held to be recoverable, the recovery of the amount in question shall be executed only after executing the recovery of the court fee and fee or charge.

(14) If, prior to making an application by the winner, the judgment debtor appears to pay all moneys required to be paid by him or her within the time-limit for making an application for recovery, the court shall receive the same and give a receipt thereof, and credit the same to the deposit revenue, and post a time-limit notice/process within Three days, indicating that the judgment holder is thereby required to appear within the time-limit as referred to in the prevailing law and that recovery of the same cannot be executed and it shall be as per the prevailing law, after the expiry of the time-limit, and the recovery shall be executed and receipt given if the judgment holder appears to receive the same within the time-limited; and if the judgment holder, despite getting such notice, does not appear within the time-limit, the money remaining upon deducting any money, if any, chargeable under this Act, from the same shall be dealt with in accordance with the prevailing Nepal law.

16. Recovery of expenses from losing party to winning party: (1) 32 If the plaintiff or appellate making a suit or complaint or appeal wins the case, he or she shall be entitled to have recovery from the defendant or opponent the summons, process and duplicate fees paid by him or her and such legal practitioner’s fee, reasonable expenses incurred for experts, witnesses and attorneys as may be recoverable pursuant to the prevailing laws and such other expenses as well, as appear reasonable from the case-file, and if the plaintiff or appellate loses and the defendant or opponent wins the case, the defendant or opponent shall be entitled to the recovery of the above-mentioned fee, charge or expenses required to be paid by him or her from the losing plaintiff or appellant.

(2) If the case is canceled (rejected) or dismissed by virtue of the suit, complaint being incapable of being tried since only the plaintiff gives up the recognizance while the defendant is in attendance on the appointed dates, the defendant shall be entitled to have the recovery of the fee chargeable on him or her from the plaintiff.

17. Refund of court fee:

(1) If the party entitled to the refund of such court fee as held to be refundable appears to have refund of the same within Two years after that date on which such refund is so held, and it is required to wait until the time-limit for appeal, the refunding court shall, subject to the budget provision, refund or cause to be refunded the moneys from the income reserve of the court, after the expiration of the time-limit for making appeal. If the income reserve does not allow for making such a refund, the sanction of the remaining amount shall be obtained and refund made accordingly.

(2) After the refund required to be made has been pursuant to Subsection (1), the matter that such-and-such more court fee or such-and suchcourt fee held to be refundable has been refunded on such-and-such date shall be set down in the receipt issued against payment of the court fee earlier, and the receipt shall be signed by the refund maker.

Chapter-7 Provisions relating to court fee on making appeal

Chapter-7 Provisions relating to court fee on making appeal

18. Court fee chargeable on making appeal:

(1) On making an appeal the following provisions shall apply to the following matters, and the fee for memorandum of appeal shall not be charged:

(a) In making an appeal on a case in which the amount in question is set out, the court fee shall be charged on appeals of all levels at the rate of 15 (Fifteen) percent of such court fee as is chargeable, while making a suit or complaint originally, on those matters on which appeal is made upon being dissatisfied therewith.

(b) If, in a partition case filed upon payment of the court fee of 33One Hundred Rupees only, the plaintiff loses the case upon being held to be entitled to the claimed partition and makes appeal and the amount in question is not set out, the court fee equivalent to that chargeable originally shall be charged on appeal of any level.

(2) Only after the payment of such court fee as held to be payable to the plaintiff and the specified penalty, fine by the appellant defendant who has, on the first appeal, lost the case and made appeal and after payment of such court fee as held to be payable and the specified penalty, fine by the plaintiff who has lost the case filed without payment of the court fee and made appeal or only after furnishing a wealth guarantee in consideration for the same, and an appeal has to be made subsequently, such appeal may lie only after making payment of what is required as per the judgment of first appeal or furnishing a wealth guarantee for the same.

(3) If an appeal, complaint is made upon paying the court fee or subject to the payment of the court fee and the appellant litigant loses the case upon the verdict of the lower court being upheld, the litigant shall not liable to other punishment for making such an appeal.

(4) If the appellant litigant wins the case in whole or in part, the litigant shall be entitled to the recovery of such court fee as held chargeable on the matter won by and paid by him or her from the losing opponent. Such court fee, penalty and fine as paid or furnished as security on making appeal and held refundable shall also be refunded in accordance with the procedures as referred to in the prevailing Nepal law.

Chapter-8 Miscellaneous

Chapter-8 Miscellaneous

19. Court fee chargeable on review or revision:

(1) In making a petition to the court competent to do so by the prevailing law for the review (reexamining) or revision (revisiting the verdict) of a case, no action shall be taken on the petition for review or revision unless and until such court fee or charge or penalty as chargeable by the judgment for the review or revision of which the petition is made is paid or any other provision made by law in relation thereto is made.

(2) If an order is made for review or revision, the court fee shall be paid at the rate of 10 (Ten) percent of the court fee chargeable on making a suit in the original court or after judgment.

(3) If, in making review or revision, the petitioner if wins the case partly or wholly, it shall be equivalent to the case appealed pursuant to Subsection (4) of Section 18. 20.34 Collection of court fee in cash: (1) In collecting and giving the court fee on a case chargeable with the court fee, it shall be collected and given in cash.

(2) After collecting the court fee pursuant to Sub-section (1), the court shall credit the same to its cash book, duly prepare a receipt thereof in duplicate, give one copy receipt to the litigant paying the court fee and retain the other copy of receipt in the concerned case-file.

(3) After examining a suit or complaint or appeal chargeable with the court fee and upon finding it to be capable of being file, the concerned official shall get it to be signed and mention on the top of the deed that such-and-such court fee has been collected and clearly mention that so much has been collected out of so much as required where court fee has not been collected at all or full court fee has not been collected originally, and duly sign the same.

(4) The Registrar of the Supreme Court or other officer designated by him35 or her and the chief officer of any other court shall on daily basis examine, or cause to be examined, whether such court fee as leviable on a case chargeable with the court fee has been collected properly or not and where the income of collected court fee has been maintained or recorded or not, and indicate the proof of examination. No case may be entered on the diary unless and until examination is made whether the court fee is credited to the revenue book and proof thereof is indicated.

(5) It shall be the duty of the Supreme Court to examine, or cause to be examined, each year the matters including whether the sub-ordinate courts have collected such court fee as required to be collected and income of collected court fee has been credited to income or not.

(6) Where a case has been filed without collecting the court fee leviable pursuant to this Act or the security fee and judgment on it has also been made and the court fee could not be recovered from the litigant, then

legal action shall be taken against the employee who have collected less or more court fee for that loss in relation to the court fee not recovered.

(7) The court inspecting authority shall examine and inquire whether the court fee has been collected in full and the court fee has been credited in accordance with this Act or not, and if appears in order, the authority shall indicate the same, and if it appears that the court fee has not been collected in full or the court fee required to be credited has not been credited, the authority shall take required action against those who fail to do so, in accordance with the prevailing law; and after an appeal, compliant is made on a case chargeable with the court fee and the case-file is submitted to the appeal hearing court, that court shall also examine the above-mentioned matters. If some defects or irregularities are found, the appeal hearing authority who makes examination of courts shall set down the matter found and date and sign the same and submit that matter to the Supreme Court.

(8) In relation to the cases filed prior to the commencement of this Act, the then prevailing law shall apply, and the court fee as referred to in this Act shall not be levied on such cases.

21. Procedures to be followed while recovering remaining court fee: In recovering the remaining court fee, the recovery shall be made by taking action as if it were a court penalty, fine.

22. Register of court fee to be maintained: There shall be a duly established and maintained register clearly showing cash figure of court fee, and indicating how much court fee has been collected from whom on which case.

23.Cases of those unable to pay court fee may be tried: Notwithstanding anything contained in the other Sections of this Act, the Adjudicating Authority or judge may, in the following circumstance, and for reasons to be recorded in a memorandum, order to file a suit, complaint, memorandum of appeal or petition for review or revision, subject to the collection of whole or some of the court fee subsequently:

(a) If the Adjudicating Authority or judge has any reasonable ground to believe that the person making a suit, complaint, memorandum of appeal or petition for review or revision, being indigent, is not able to pay whole or some of the court fee,

(b) If it is recommended by the concerned Village Development Committee or Municipality that the person making a suit, complaint, memorandum of appeal or petition for review or revision has no other asset other than the goods in dispute and is thus unable to pay the court fee or the Adjudicating Authority or judge has any reasonable ground to believe that matter.

24. This Act to prevail: (1) This Act shall not apply to sate cases and criminal cases as referred to in the then prevailing Nepal law. 38 (2) If any local self-governance body is conferred the powers of court by any Nepal law or in accordance with Nepal law, such a body shall not be entitled to use this Act.

25. Power to frame Rules: The Government of Nepal may frame Rules in order to accomplish the objectives of this Act.

26. This Act or Rules under this Act to prevail, and repeal: (1) The Khadga Nisana Sanad of 8 Marg 1999 and of 17 Shrawan 200 in relation to the court fee shall and the Act of 28 Number of the Chapter on Punishment are hereby repealed with effect from the date of commencement of this Act. (2) The matters contained in this Act or the Rules framed under this Act shall be governed by this Act or the Rules and the other matters shall be governed by the prevailing Nepal law.

27. Power to remove difficulties: (1) If there arises any difficulty with the implementation of the objectives of this Act, the Government of Nepal may, by a Notification in the Nepal gazette, issue necessary order in order to remove such difficulties, and such an order……………39 shall be deemed to have been contained in this Act. (2) ………………….40

Preamble

Whereas, it is expedient to make some necessary provisions and bring about uniformity in relation to the corporations to be established by the Government of Nepal; Now, therefore, His Majesty King Mahendra Bir Bikram Shah Dev has, on the advice and with the consent of the National Panchayat, made this Act.

2. Definitions

2. Definitions:

In this Act: (a) “Corporation” means a corporation established pursuant to Section 3.

(b) “Board of Directors” or “Director” in relation to any Corporation means the Board of Directors or Director of the Corporation. (c) “Concerned Department” means the concerned department of the Government of Nepal or any other department or authority specified by the Government of Nepal publishing a notice in the Nepal Gazette.

3. Establishment of Corporation

3. Establishment of Corporation:

(1) The Government of Nepal may, if it appears necessary or appropriate to gat act such as done by any Company as is contributive to the health, facility or economic interest of the people generally, establish and form any Corporation, by publishing a notice in the Nepal Gazette, setting out the following matters:

(a) Name of the Corporation,

(b) Place and address of head office of the Corporation,

(c) Objectives of the Corporation,

(d) Names, addresses and occupations of the Board of Directors of the Corporation.

(2) The Corporation shall be an autonomous body corporate with perpetual succession3 and shall have a separate seal of its own for all of its activities.

(3) The Corporation may, like an individual, acquire, use, and otherwise transfer any movable and immovable property.

(4) The Corporation may sue by its name and be also sued by the same name.

4. Board of Directors

4. Board of Directors:

(1) Each Corporation shall consist of the Directors nominated by the Government of Nepal in such a number as specified by the Government of Nepal. The Director designated by the Government of Nepal, from amongst the Directors, shall be the chairperson.

(2) The Directors shall hold office during the pleasure of the Government of Nepal.

(3) If the office of a Director falls vacant because of his or her death, resignation or any other cause, and the Government of Nepal fills the vacancy by nominating any other person, a notice thereof indicating the name, address and occupation of such Director shall be published in the Nepal Gazette.

5. Disqualification for Director

5. Disqualification for Director:

Any of the following persons shall not be eligible to be a Director of a Corporation:

(a) A person who has not attained the age of twenty one years,

(b) A person who is insane;

(c) A person who is convicted by a court of an offense of any kind of theft or cheating or corruption or unauthorized embezzlement or misuse of assets in his or her custody and sentenced for the same,

(d) A person who has become insolvent or got declared insolvent; or

(e) A person who has personal interest of any kind in any contract or transaction of the Corporation.

7. Alteration in objects or functions of Corporation

7. Alteration in objects or functions of Corporation:
(1) If, at any time, it is necessary to make alteration in any objects of a Corporation or in any acts specified to be done by a Corporation, the Board of Directors make a report, along with the reason for the same, to the Government of Nepal for approval, and if such a report is made and the Government of Nepal holds it to be reasonable, it may give approval for such alteration.

(2) After approval is given by the Government of Nepal pursuant to sub-section (1), a notice shall be published in the Nepal Gazette and in leading newspapers about the amended objects and acts of the Corporation, and the objects or acts of the Corporation may be altered only after the publication of such a notice.

8. Fund of Corporation

8. Fund of Corporation:

(1) There shall be one Corporation fund consisting of the following amounts, and all amounts required to be spent on behalf of the Corporation shall be chargeable on the fund:

(a) Amounts given as grants by the Government of Nepal or other person to the Corporation, and

(b) All amounts received by the Corporation from its assets or transactions or loans of the Corporation.

(2) All cashes of the Corporation shall be created to an account by the name of “Corporation fund” to be opened with the Nepal Rastra Bank in a place where such Bank is situated, and with any other local bank in a place where such Bank is not situated.

9. Accounts etc. of Corporation:

9. Accounts etc. of Corporation:

(1) All records, books of accounts of the incomes and expenses and accounts of a Corporation shall be maintained as prescribed by the Government of Nepal.

(2) The accounts of incomes and expenses of the Corporation shall have to be got audited each year by an auditor appointed by the Government of Nepal, and it shall be the duty of each Director or employee to give any such document or information as required by such an auditor in the course of performing his or her duty.

(3) After examining the books of accounts, the auditor shall prepare an audit report setting out, inter alia, the following matters, and submit a copy of the report to the Government of Nepal and other copy to the Corporation:
(a) Whether the matters required to be included in the profit and loss account prepared by the Corporation have been so included or not, and whether the statements of accounts reflect the true economic condition of the Corporation or not,
(b) Whether the accounts of incomes and expenses submitted are due or not,
(e) Whether any document, explanation or information sought has been given or not, and if so given, whether it is satisfactory or not,
(f) Whether the manner of maintaining the accounts of the
Corporation is proper or not, and
(g) Such other matters as the auditor considers necessary.

11. Liaison with Government of Nepal

11. Liaison with Government of Nepal: In making contact by the Corporation with the Government of Nepal in the course of performing its activities or in giving direction by the Government of Nepal to the Corporation pursuant to Section 10, such contact or direction shall be made or given through the concerned Department.

12. Saving of officers against loss or damage

12. Saving of officers against loss or damage:

The Directors or employees of the Corporation shall not be held individually liable for any loss or damage caused or to be caused from any act done or purported to be done by them in good faith in the course of performing their duties in accordance with this Act or the bye-laws framed hereunder.

13. Punishment

13. Punishment:

(1) If a person who has the duty to maintain, prepare and submit any statements, accounts, reports or other documents pursuant to this Act or the bye-laws framed under this Act, knowingly or with ulterior motive, conceals the truth and state a false matter in such accounts or report or other documents or alters the contents or attempts to do such an act, that person shall be liable to the punishment of imprisonment for a term not exceeding three years or a fine of up to three thousand rupees or with both punishments.

(2) If any Director or employee of the Corporation causes loss to the Corporation by doing any act knowingly or recklessly or with ulterior motive by doing any act other than that set forth in sub-section (1), such a Director or employee shall be liable to the punishment of imprisonment for a term not exceeding one year or a fine of up to one thousand rupees.

(3) If any person obstructs the auditor appointed pursuant to Section 9 or any other authorized official with his or her business or does not provide, except for any reasonable reason, such document, explanation or information to the auditor or official as demanded, such a person shall be liable to the punishment of a fine of up to one thousand rupees.

(4) If the Corporation has suffered any loss or damage from any offence punishable under this Section, the amount of such loss or damage shall also be recovered from the offenders on the pro rata basis.

14. Dissolution

14. Dissolution:

The Government of Nepal may, if it considers necessary to dissolve any Corporation, dissolve the Corporation by publishing a notice in the Nepal Gazette, and after the notice has been published accordingly:

(a) All assets and liabilities of the Corporation shall devolve on the Government of Nepal,

(b) All contracts and agreements concluded with the Corporation, except those concluded with mala fide intention, shall be deemed to have been concluded with the Government of Nepal.

14A.4 To hand over assets and liabilities of dissolved Corporation to other organization or Corporation: If any Corporation is dissolved pursuant to Section 14, the Government of Nepal may, by publishing a notice in the Nepal Gazette, hand over all such assets and liabilities of the dissolved Corporation as may be dissolved to the Government of Nepal to any organization formed pursuant to other prevailing Nepal law or to any Corporation formed pursuant to this Act with the consent of that organization

or Corporation, and if the hand-over of assets and liabilities is so made, any contract and agreement concluded with the dissolved Corporation shall be deemed to have been concluded with the organization or Corporation to which the assets and liabilities of the dissolved Corporation, and the provisions of Nepal law relating to the organization or Corporation to which such hand-over has been made shall apply in that respect.

15. Cases and trial of cases

15. Cases and trial of cases:

(1) Any case punishable under this Act may be filed only by a complaint of the Corporation or concerned Department, and even though no complaint has been filed by any one in relation to the matter falling under its jurisdiction pursuant to sub-section (2), the concerned Department may institute case.

(2) The concerned Department shall have power to try and settle cases relating to the offense punishable under sub-section (3) of Section 13, and an appeal may be made to the Court of Appeal 6 against any judgment or final decision made by the concerned Department.

(3) An appeal may be made to the Court of Appeal7 against any judgment or final decision made by the concerned Department pursuant to sub-section (2). Provided that a fine of two hundred rupees or less than that is imposed by such a judgment or decision, no appeal may be made.

16. Powers to frame bye-laws

16. Powers to frame bye-laws:

(1) Each Corporation may frame its bye-laws in order to accomplish the objectives of this Act and manage its acts and actions.

(2) Without prejudice to the generality of the powers conferred by sub-section

(1), such Corporation may frame bye-laws on the following matters, in particular:
(a) Acts to be done by the Corporation, and manner for doing such acts,
(b) The manner of and procedures for performing the business of the Board of Directors,
(c) Matters relating to branches or sub-branches of the Corporation,
(d) Appointment, promotion, facilities, discipline and other terms of service of the employees of the Corporation,
(e) Operation of the fund of the Corporation,
(f) The procedures for and power to make contract or agreement to be made on behalf of the Corporation,
(g) Procedures for using the seal of the Corporation,
(h) Such other matters as may be necessary to carry out its activities by the Corporation in a systematic manner.

Preamble

Act number 8 of the year 2049(1992)

An Act Made to Provide for the Cooperative Associations and Societies

Preamble: Whereas, it is expedient to make provisions on the formation and operation of various types of cooperative associations and societies based on the mutual support and cooperativeness for the economic and social development of the general pubic consumers by the farmers, craftsperson (Kaligadh), class of people with low capital and low income, labors, landless and unemployed people or social workers of the country; Be it enacted by the Parliament in the twenty-first year of the reign of His Majesty King Birendra Bir Bikram Shah Dev.

Chapter-1 Preliminary

Chapter-1 Preliminary

1. Short title and commencement: (1) This Act may be called as the “Cooperatives Act, 2048(1992)”. (2) This Act shall come into force immediately.

2. Definitions: Unless the subject or the context otherwise requires, in this Act: (a) “association” or “society” means a cooperative association or society registered pursuant to Section 5. (b) “member” means a person, association, society or other body who has obtained membership by subscribing shares of an association or society in accordance with the Bye-law of such association or society. (c) “board” means the board of directors formed pursuant to the Bye-law of an association or society. (d) “Registrar” means the registrar appointed pursuant to Section 21.

(e) “general meeting” means the general meeting of the concerned association or society. (f) “Bye-law” means the Bye-law of the concerned association or society. (g) “prescribed” or “as prescribed” means prescribed or as prescribed in the Rules framed under this Act.

Chapter-2 Formation of Association or Society

Chapter-2 Formation of Association or Society

3. Formation of association or society:

(1) An association or society as follows may be formed with a view to rendering services and facilities for the economic and social development of its members in consonance with the cooperative principle.
(a) A preliminary association consisting of at least twenty five persons as its members.
(b) A sectoral society consisting of at least five associations as referred to in Clause (a) as its members.
(c) A District cooperatives society consisting of at least five associations or sectoral societies out of those as referred to in Clause (a) or in Clause (b) or both as its members.
(d) A central cooperatives society consisting of at least twenty five sectoral associations as referred to in Clause (a) or at least five sectoral societies as referred to in Clause (b) as its members.
(e) A national cooperatives society consisting of at least fifteen societies as referred to in Clauses (b), (c) and (d) as its members.

(2) Notwithstanding anything contained in Sub-section (1), not more than one District cooperatives society or sectoral society of the same nature and not more than one central cooperatives society of the same nature may be formed in the same District.

(3) The jurisdiction/domain of an association or society shall be as specified in the Bye-law of that association or society.

 

4. Application for registration of association or society: (1) The members concerned have to make an application to the Registrar for the registration of an association or society formed pursuant to Section 3. (2) An application to be made pursuant to Sub-section (1) has to be accompanied by two copies of the Bye-law of the concerned association or society, work plan and description of shares which the members have undertaken to subscribe and signed by at least the members as referred to in Section 3.

5. Application for registration of association or society: (1) On an application made pursuant to Section 4 for the registration of an association or society, the Registrar shall hold necessary inquiry as to whether the Bye-law of that association or society is in consonance with the cooperative principle. (2) If the Registrar so considers appropriate on an inquiry held pursuant to Sub-section (1), the Registrar shall register the association or society and issue the registration certification, as prescribed.

6. Powers to refuse to register: (1) If, on an inquiry held pursuant to Sub-section (1) of Section 5, the Registrar thinks that any matter needs to be amended, the Registrar shall give the persons making application for the registration of the concerned association or society a notice for amendment within fifteen days. (2) If the applicants refuse to make amendment pursuant to the notice as referred to in Sub-section (1) or fail to make amendment within thirty five days after the date of receipt of such notice, the Registrar may refuse to register the association or society and assign the reasons for such refusal to register and give information thereof to the concerned applicants. (3) Where the Registrar refuses to register an association or society pursuant to Sub-section (2), an applicant who is not satisfied with such refusal may make a petition to Government of Nepal.

7. Association or society to be body corporate: (1) An association or society shall be an autonomous and body corporate with perpetual succession. (2) An association or society shall have a separate seal of its own for all of its activities. (3) An association or society may, like an individual, acquire, use and otherwise deal with any movable and immovable property. (4) An association or society may, like an individual, sue by its name and be also sued by the same name.

8. Liability of association or society to be limited: (1) The liability of an association or society shall be limited. (2) The name of each association or society shall contain the word “cooperative” and the word “limited” as its last word.

Chapter-3 Membership of Association or Society

Chapter-3 Membership of Association or Society

9. Membership of association:

(1) The Nepalese citizens as follows may be members of an association: (a) Persons who make an application for the registration of the association, (b) Persons who reside within the jurisdiction of the association, subscribe the shares sold pursuant to Section 23 and intend to avail the services of the association, undertake to bear the responsibilities attached to membership and fulfill the terms and conditions mentioned in the Bye-law, (c) Bodies which subscribe the shares sold pursuant to Subsection (1) of Section 23.

(2) A person who intends to become a member of an association has to make an application to its board.

(3) In the event of refusal by the board to provide membership, the applicant may make a petition to the general meeting; and a decision made by the general meeting on such petition shall be final.

(4) The membership of those persons who have become share members by virtue of conversion of compulsory saving into share capital shall ipso facto lapse once they get the amount of saving refunded.

10. Membership of society: (1) The concerned sectoral associations within the jurisdiction of a sectoral society may obtain membership of the sectoral society in consonance with the provisions contained in the Bye-law of that society. (2) All associations and sectoral societies within the concerned District may be members of a District cooperative society in consonance with the provisions contained in the Bye-law of that society. (3) Sectoral associations and sectoral societies may be members of a central cooperative society in consonance with the provisions contained in the Bye-law of that society. (4) All associations and other bodies as referred to in the Bye-law of a national cooperative society may be members of such national cooperative society in consonance with the provisions contained in the Bye-law of that society. (5) The bodies which subscribe the shares of a society sold pursuant to Subsection (1) of Section 23 may be members of the society.

11. Termination of membership: The membership of an association or society shall be terminated in such circumstances as prescribed.

Chapter-4 Modus Operandi

Chapter-4 Modus Operandi

12. Bye-law: (1) An association or society may, subject to this Act and the Rules framed under this Act, make a Bye-law for the operation of its business. The Byelaw so made shall come into force after having been approved by the Registrar. (2) Every association or society shall be operated and managed in accordance with the Bye-law of that association or society.

(3) The Bye-law has to set out the name, address, jurisdiction/domain, objectives, modus operandi of the association or society and such other details as may be prescribed. (4) The Bye-law may be amended by a two-thirds majority of the members present at the general meeting of the concerned association or society. (5) The Bye-law amended pursuant to Sub-section (4) shall come into force after having been approved by the Registrar.

13. General meeting: (1) Every association or society shall have its one general meeting. (2) All members of an association shall be members of the general meeting of the association. (3) The general meeting of a society shall consist of such members as mentioned in the Bye-law.

14. Functions, duties and powers of general meeting: The functions, duties and powers of the general meeting shall be as follows: (a) To examine and endorse annual accounts of the association or society. (b) To elect the board of directors and the accounts committee and make decision on removing any director or dissolving the board. (c) To discuss the reports of the board of directors and the accounts committee and give necessary directives. (d) To make decision on amendment to the Bye-law. (e) To make decision on the division of the association or society or on its unification with another association or society or on its liquidation.

15. Meetings of general meeting: (1) Every association or society has to convene its preliminary general meeting within three months after the date of its registration. (2) Every association or society has to convene its annual general meeting within six months after the expiration of every fiscal year. (3) The extra-ordinary general meeting of an association or society may be convened in such circumstances as prescribed.

(4) The quorum for a meeting of the general meeting shall be as prescribed. Provided that, the presence of fifty one percent members of the total number of members of the general meeting shall be required while making amendment to the Bye-law.

16. Board of directors:

(1) Every association or society shall have one board of directors.
(2) The formation, functions, duties and powers of the board shall be as provided in the Bye-law of the concerned association or society.
(3) The tenure of the board shall be as provided in the Bye-law but shall not exceed a period of five years. (4)The board has to get a new board elected prior to the expiration of its tenure.
(5) If the board does not hold election in time pursuant to Sub-section (4), any member may give information thereof to the Registrar.
(6) Irrespective of whether information as referred to in Sub-section (5) is received or not, the Registrar shall hold election to the board within six months after the expiration of the tenure of the board.
(7) The previous board may continue to function as provided in the Bye-law pending the holding of election to a new board pursuant to Sub-section (4) or (6).

17. Accounts committee: (1) The general meeting of every association may elect and form one accounts committee consisting of three members including one coordinator. (2) The accounts committee may perform the internal audit of the association in a regular basis and give suggestions to the board. (3) The accounts committee has to submit its accounts related report to the general meeting.

18. Expulsion of member of board or dissolution of board: (1) If a majority of the general meeting adopts a proposal submitted to the general meeting by five percent members of the general meeting, setting out the reasons and rationality for expelling any elected member of the board or dissolving the board, such member of the board may be expelled or the board dissolved.
(2) If any member of the board is expelled pursuant to Sub-section (1), the general meeting shall elect another member to the office of the member so expelled for the remainder of term.
(3) In the event of dissolution of the board pursuant to Sub-section (1), the general meeting make provision of election to the new board. (4) All the provisions contained in Sub-sections (1), (2) and (3) shall also apply to the expulsion of a member of the accounts committee or dissolution of the accounts committee.

19. Sub-committees: (1) The board may, for the performance of the business of association or society, form sub-committees as provided in the Bye-law.
(2) The functions, duties and powers and procedures of a sub-committee to be formed pursuant to Sub-section (1) shall be as provided in the Bye-law.

20. Appointment of employees and advisers: (1) The board may appoint employees and advisers, as per necessity, for the operation of the association or society, in accordance with the process endorsed by the general meeting.
(2) The remuneration and other conditions of service of the employees and advisers appointed pursuant to Sub-section (1) shall be as mentioned in the Byelaw of the concerned association or society.

Chapter-5 Registrar

Chapter-5 Registrar

21. Appointment of Registrar: (1) Government of Nepal shall appoint one Registrar to register associations or societies and perform such other functions as prescribed, subject to this Act and the Rules framed under this Act. (2) The remuneration and other conditions of service of the Registrar shall be as prescribed.

22. Delegation of powers: The Registrar may delegate any of the powers conferred to him/her pursuant to this Act or the Rules framed under this Act to any officer subordinate to him/her.

Chapter-6 Financial Source and Mobilization

Chapter-6 Financial Source and Mobilization

23. Sale of shares: (1) An association or society may collect share capital by selling its shares to those persons who are under its jurisdiction and are eligible to become its members, members and other bodies as prescribed. (2) An association or society may, with approval of Government of Nepal, sell a maximum of twenty percent share of its total share capital to a foreign cooperative association or society which is a member of the International Cooperative Alliance. (3) In selling its shares pursuant to Sub-section (1), an association shall so sell shares to a person or association that it does not exceeds twenty percent of its total share capital to the same person or association. Provided that, this restriction shall not apply to Government of Nepal or an organization or body owned by Government of Nepal. (4) A member shall be entitled to cast vote only on the basis of one person one vote irrespective of the number of shares subscribed by that person.

24. Power to issue debentures and borrow loans: An association or society may issue debentures and borrow loans from a native or foreign bank or other body. Provided that, approval of Government of Nepal has to be obtained prior to issuing debentures or borrowing loans.

25. Security of Government of Nepal may be obtained while borrowing loans: If an association or society intends to obtain the security of Government of Nepal against debentures to be issued by the association or society or loans borrowed from a foreign bank or other body, the association or society has to make an application to Government of Nepal for the same.

(2) If Government of Nepal, upon consideration of an application made pursuant to Sub-section (1), thinks appropriate, it may provide security against such debentures or loans. In providing such security, Government of Nepal may prescribe necessary terms and restrictions in respect of repayment of such debentures or loans; and the association or society has to make repayment of debentures or loans subject to those terms and restrictions.

26. Powers to carry on banking transactions:
(1) An association or society may accept saving deposits from its member and lend loans to its members.
(2) An association or society has to obtain prior approval of the Nepal Rastra Bank in order to carry on other banking transactions including acceptance of deposits and disbursement of loans limited only to its members, other than the transactions mentioned in Sub-section (1). Such association or society has to observe the terms and conditions prescribed and directions given by the Nepal Rastra Bank.
(3) An association or society carrying on business after being registered prior to the commencement of this Act has to make arrangements for carrying on transactions pursuant to Sub-section (1) or Sub-section (2) within one year after the date of commencement of this Act.
(4) Notwithstanding anything contained elsewhere in this Act, associations or societies may jointly form a cooperative bank. (5) If an application, accompanied by a recommendation of the Nepal Rastra Bank, is made for the establishment of a bank pursuant to Sub-section (4), the Registrar may hold necessary inquiry and register such bank. (6) A bank registered and established pursuant to Sub-section
(5) may carry on the banking transactions under the Commercial Bank Act, 2031(1975) approved by the Nepal Rastra Bank; and the bank has to observe the terms and conditions prescribed by and the directions given from time to time by the Nepal Rastra Bank.

27. Distribution of saving: (1) The funds as prescribed may be established out of the amounts that remain after depositing into the reserve fund at least one-fourth of the net saving of an association or society in any year. (2) A dividend or bonus to the extent mentioned in the Bye-law may be distributed from the funds, other than the reserve fund, in consonance with the purpose of such funds. Provided that, the amount of share dividend for a year shall not exceed fifteen percent of the share capital.

28. Prohibition on providing financial assistance: No association or society shall provide donation or any other kind of financial assistance to any organization or association working for any political party or religion or community.

29. Prohibition on awarding contract: No association or society shall award any contract of that association or society to any member of its board or accounts committee or its employee.

30. Share or right of member not to be auctioned: The share or right of any member remaining as the principal amount of an association or society shall not be sold by auction of any loan or liability, other than the loan or liability of the same association or society.

Chapter-7 Unification or Division

Chapter-7 Unification or Division

31. Unification or division:

(1) In order to merge and unify two or more associations with each other or divide one association or society into two or more associations or societies, a two-thirds majority of the general meeting of the concerned association or society has to make a decision to that effect. Such decision shall also set out the terms and procedures of unification and division.

(2) The Registrar shall, based on the decision as referred to in Sub-section (1), unify or divide the concerned association or society.

Chapter-8 Information, Records and Examination of Accounts

Chapter-8 Information, Records and Examination of Accounts

32. To maintain records of decisions: Every association or society has to maintain updated records of the meetings of, and activities carried out by, its general meeting, board, accounts committee and sub-committees.

33. Accounts and other records: Every association or society has to maintain records of accounts of all transactions carried on by it and other necessary records as prescribed.

34. Submission of information: Every association or society has to submit an annual report of its transactions and audit report as well as a report including the following details to the Registrar or official designated by him/her within the prescribed time each year: (a) Policy and plan set in respect of saving description, (b) List of names of directors and their remaining tenure, (c) Fixed date of the meeting of the general meeting, and (d) Such other details as prescribed by the Registrar from time to time.

35. Powers to inquire: (1) If at least five percent members of an association or society make an application mentioning that the association or society is not functioning satisfactorily, the Registrar may him/herself inquire into the matter or get such inquiry held by any official empowered in writing to that effect.
(2) In the event that the business transaction of any association or society does not appear satisfactory, the Registrar may him/herself inquire into the matter or get such inquiry held by any official.
(3) It shall be the duty of every member and employee of the association or society to render assistance in every respect by providing such information as sought while holding inquiry by the Registrar or the official authorized by him/her pursuant to Sub-section (1) or (2). (4) An information of the results of an inquiry held pursuant to Sub-section (1) or (2) shall be given in writing to that association or society.

 

36. Powers to make inspection and give suggestions: (1) The Registrar or official authorized by him/her may inspect the association or society. (2) If, in making inspection pursuant to Sub-section (1), it is not found that provisions of this Act or the Rules framed under this Act or Bye-law have not been complied with, the concerned official may give necessary suggestions to make provisions pursuant to the Act, Rules or Bye-law.

37. Examination of accounts:

(1) Every association or society has to get its accounts of every fiscal year examined by any registered auditor recognized by the Registrar or official designated by him/her within three months after the expiration of that fiscal year.

(2) Notwithstanding anything contained in Sub-section (1), the general meeting of the concerned association or society may, with the approval of the Registrar, appoint a registered auditor and cause the accounts of that association or society to be examined by such auditor.

(3) In appointing an auditor pursuant to Sub-section (2), the same person or company may not be appointed for more than three consecutive times.

(4) A report on examination of accounts has to be submitted to the general meeting and got endorsed.

(5) If the general meeting does not endorse the report on examination of accounts submitted to the general meeting pursuant to Sub-section (4), the general meeting may appoint another auditor and have an inquiry held or accounts reexamined.

(6) The remuneration and facilities of auditor shall be as determined by the general meeting.

Chapter-9 Concessions and Facilities to Association or Society

Chapter-9 Concessions and Facilities to Association or Society

38. Exemptions and facilities to association or society:

(1) Notwithstanding anything contained in the prevailing law, the association or society shall be entitled to the following exemptions and facilities: (a) The association or society shall not be required to have registration pass of any instrument relating to its transaction, other than an instrument relating to immovable property. (b) No revenue stamp fee or registration fee shall be charged on a document or any kind of instrument related with the purchase and sale or exchange of an immovable property as carried out by the association or society. (c) ———– (d) No local tax shall be levied on the goods traded by the association or society.

 

(2) Government of Nepal may, by a notification in the Nepal Gazette and pursuant to the prevailing law, exempt fully or partly from chargeable customs tariff or sales tax such machineries, industrial and agro-machines, equipment, spare parts, raw materials, office equipment and means of transport as are imported by an association or society for its use.

(3) Government of Nepal may, by a notification in the Nepal Gazette and pursuant to the prevailing law, exempt fully or partly from chargeable excise duty or sales tax the goods produced by any association or society.

(4) An association or society doing industrial business shall also be entitled to such other exemptions, facilities and protection as the industries are entitled to pursuant to the law, in addition to the exemptions mentioned in Sub-sections (1), (2) and (3).

39. Recovery of dues of association or society: Any association or society itself or the Registrar on recommendation of the association may recover the loans borrowed by any person form the association or society or any amounts due and payable to the association or society, the amount of such property of the association or society as has been embezzled as well as interest chargeable in such amounts by auctioning the assets of such person by fulfilling the procedures as prescribed.

40. Preference of association or society: If any member does not pay to the association or society any amount payable by such member, the association or society shall have preference to the amounts that remain after setting aside the amount for payment of a right or claim, if any, of Government of Nepal over the assets of such member.

Chapter-10 Dissolution of, and Cancellation of Registration of, Association or Society

Chapter-10  Dissolution of, and Cancellation of Registration of, Association or Society

41. Dissolution of, and cancellation of registration of, association or society: (1) A two-thirds majority of the total number of members of the general meeting of an association or society may decide to liquidate the association or society. (2) On receipt of an application accompanied by the decision as referred to in Sub-section (1), the Registrar or person authorized by him/her may cancel the registration of such association or society. (3) If, in holding inquiry pursuant to Sub-section (2) of Section 35 or making inspection pursuant to Section 36, any association or society is found remaining inoperative being failed to carry on any transaction for two consecutive years or any association or society is found to have acted contrary to its objectives, the Registrar or person authorized by him/her may cancel the registration of such association or society. In the event of such cancellation of registration, the association or society shall be dissolved and the certificate of registration shall ipso facto be void.

42. Appointment of liquidator:

(1) If any association or society is dissolved pursuant to Section 41, the Registrar or person authorized by him/her may appoint one liquidator to implement matters pertaining thereto.

(2) The functions, duties and powers and remuneration of the liquidator shall be as prescribed.

Chapter-11 Punishment

Chapter-11 Punishment

43. Imposition of fine for failure to submit information: A fine not exceeding One Thousand Five Hundred Rupees shall be imposed, by order of the Registrar, on any association or society which fails to submit a report pursuant to Section 34 or information as referred to in Sub-section (3) of Section 35.

44. Imposition of fine on person carrying on trade by using the word cooperative: A fine not exceeding Two Thousand Rupees shall be imposed, by order of the Registrar, on a person, other than an association or society registered pursuant to this Act, who carries on trade and business in violation of Section 46. If such person who has once been punished with fine is held to have again carried on trade and business in violation of that Section, such person shall be liable to a fine not exceeding Five Thousand Rupees for each instance following the second instance.

45. Appeal: The concerned association or society or person who is not satisfied with the cancellation of registration of such association or society made by the Registrar or person authorized by him/her pursuant to Sub-section (3) of Section 41 or with an order made by the Registrar pursuant to Section 43 or 44 may make an appeal to the Court of Appeal within thirty-five days.

Chapter-12 Miscellaneous

Chapter-12 Miscellaneous

46. Restriction on the use of word cooperative (or translation thereof): Any person, firm or organization, other than any association or society registered pursuant to this Act shall be entitled to carry on trade or business by adding the word cooperative (or its English translation) to its name.

47. Companies Act, 2021(1964) not to apply: The Companies Act, 2021 (1964) shall not apply to the association or society registered under this Act.

48. Powers to frame Rules:
(1) In order to implement the objectives of this Act, Government of Nepal may frame necessary Rules.
(2) Without prejudice to the generality of the powers conferred by Subsection (1), Rules may be framed particularly on the following matters: (a) Prescription of the format of application for the registration of the association or society and of certificate. (b) Making provisions on the powers and procedures of the general meeting and extra-ordinary general meeting of the association or society. (c) Provisions of financial source of the association or society and mobilization thereof. (d) Monitoring and supervisions of the association or society.

49. Repeal and saving:
(1) The Common Association (Sajha Snastha) Act, 2041 (1984) is hereby repealed.
(2) Any association or society registered under the Common Association (Sajha Snastha) Act, 2041 (1984) shall be deemed to have been registered pursuant to this Act.

CONSUMER PROTECTION ACT, 2054 (1998) Complete Book

CONSUMER PROTECTION ACT, 2054 (1998)

Date of Authentications and publication : 2054/10/15, (January 28, 1998)
1. Some Nepal Acts Amendment Act, 2055 2055/10/07(January 21, 1999)
2. Strengthening Republic and Some Nepal Laws Amendment Act, 2066 (2010) ACT NO. 20 OF THE YEAR 2054 (1998) Preamble: Whereas, it is expedient to make provisions for protecting consumers from irregularities concerning the quality, quantity and prices of consumer goods or services, ensuring that no one lowers or removes the attributes or usefulness of consumer goods or services, preventing circumstances in which monopolies and unfair trade practices may lead to an increase in prices, as well as false and misleading propaganda regarding the use and usefulness of consumer goods or services, selling, supplying, importing, exporting and storing safe and quality consumer goods or services, and protecting the rights and interests of consumers through the establishment of an agency for redressing the hardships of consumers, and thus maintaining the health, convenience and economic welfare of consumers,

Now therefore, the Parliament has enacted this Act in the 26th year of the reign of Majesty’s King Birendra Bir Bikram Shah Dev.

1. Short Title and Commencement : (1) This Act may be called “Consumer Protection Act, 2054 (1998).” (2) It shall come into force on Baisakh 1, 2055 (April 13, 1999).

2. Definitions : In this Act, Unless otherwise meant with reference to the subject or context;
(a) “Consumer” means an individual or institution consuming or using any consumer good or service.
(b) “Council” means the Consumer Protection Council formed under Section 3.
(c) “Compensation Committee” means the Compensation Committee formed under Section 23.
(d) “Consumer goods” mean goods or materials made through the admixture of several goods which are consumed or used by consumers and this term also includes raw materials, colours, flavors or chemicals used in the production of such consumer goods.
(e) “Service” means any labour, facility or consultancy provided for any work on payment of any kind of service charge or other consideration.
(f) “Production” means the process of producing, preparing, processing, converting, packing, repacking, assembling or labelling any consumer goods, or all or any process to be adopted in that connection.
(g) “Label” means a tag, symbol, picture or other descriptive objects written, printed, lithographed, symbolized, embossed, affixed or otherwise shown in consumer goods or their containers.
(h) “Unfair trade practices” means the sale or supply of consumer goods or services by making false or misleading claims about their actual quality, quantity, price, measurement, design, make etc., or the sale or supply of consumer goods produced by others by affecting their quality, quantity, price, measurement, design, make, etc.
(i) “Sub-standard consumer goods” means consumer goods of any of the following conditions:

(1) Consumer goods in which the quantity of an essential ingredient has been lowered, or any other material has been mixed, in such a manner that the quality falls short of the standard determined under Section 11.

(2) Consumer goods which are stale, rotten or stored or prepared in dirty or toxic conditions or in which any chemical, colour or flavour has been used, so that they become harmful to health.

(3) Consumer goods which are fully or partly made of any diseased or disease-generating animals or birds or harmful vegetation. (4) Consumer goods of a quality which falls short of the minimum necessary standard or exceeds the maximum standard prescribed, if any, in Act or in the orders issued under the Rules framed under Act.

(j) “Vendor” means an individual or a governmental or non-governmental organization or cooperative society selling and supplying consumer goods or services on a wholesale or retail basis.

(k) “Laboratory” means an institution which has been established with the objectives of testing the purity, completeness or quality of consumer goods, and which has been recognized by Government of Nepal.

(l) “Consumers Association” means an association established under prevailing law with the objective of protecting and promoting the rights and interests of consumers.

(m) “Inspection Officer” means an Inspection Officer appointed or designated under Section 14.

(n) “Prescribed” or “as prescribed” means prescribed or in the manner prescribed in the Rules framed under this Act.

3. Formation of Consumer Protection Council :

(1) A Consumer Protection Council shall be formed in order to formulate policies relating to the protection of the rights and interests of consumers, and offer suggestions to Government of Nepal on matters concerning the rights and interests of consumers. (2) The Council mentioned in Sub-Section

(1) shall comprise of the following Chairperson and members:
(a) Minister/Minister of State for Supplies – Chairperson
(b) …………
(c) Secretary, Ministry of Supplies – Member
(d) Secretary, Ministry of Industry – Member
(e) Secretary, Ministry of Agriculture – Member
(f) Secretary, Ministry of Home – Member
(g) Secretary, Ministry of Commerce – Member
(h) Director-General, Nepal Standards and Weights and Measures Department – Member
(i) President, Federation of Nepalese Chambers of Commerce and Industry – Member
(j) Three representatives nominated by Government of Nepal from non-governmental organizations associated with the rights and interests of consumers – Members (k) Two women representatives nominated by Government of Nepal from among women working in the fields associated with the rights and interests of the consumers – Members (l) An officer of Government of Nepal designated by Government of Nepal – Member-Secretary (3) Members nominated under Clauses (j) and (k) of Sub-section (2) shall have a tenure of two years, and may be re-nominated for one more term. (4) The Chairperson and members of the Council shall receive meeting allowances as prescribed by Government of Nepal.

4. Functions, Duties and Powers of the Council : (1) The functions, duties and powers of the Council shall be as follows: (a) To offer suggestions to Government of Nepal on matters relating to the protection of the rights and interests of consumers, the supply system and prices, quality and purity of consumer goods and services. (b) To disseminate or cause to disseminate information relating to the rights and interests of consumers in order to inform them about the standard of goods and services so as to protect them in matters concerning consumer goods and services. (c) To inform or cause to inform consumers about the prices, quality, quantity and purity of consumer goods and services, as well as about unfair trade practices concerning them. (d) To conduct or cause to conduct studies in connection with the protection of the rights and interests of consumers. (e) To offer suggestions to Government of Nepal on changing the existing policies or framing new policies relating to the protection of the rights and interests of consumers. (f) To maintain or cause to maintain updated national and international information relating to the protection of the rights and interests of consumers. (g) To monitor or cause to monitor the rights of consumers and offer suggestions to Government of Nepal to rectify the shortcomings noticed in the course of such monitoring. (h) To discharge or cause to discharge the functions prescribed by Government of Nepal. (i) To discharge or cause to discharge such other functions as are deemed appropriate for the protection of the rights and interests of consumers. (2) The Ministry of Supplies shall function as the Secretariat of the Council.

5. Procedures Relating to Meetings of the Council : (1)The Council shall meet on the date and at the time and place appointed by the Chairperson. (2) The quorum for a meeting of the Council shall be deemed to have been fulfilled in case it is attended by at least fifty percent of its total membership. (3) Meetings of the Council shall be presided over by the Chairperson, and, in absence, by a person chosen by the members from among themselves. (4) Decisions of the Council shall be authenticated by the MemberSecretary. (5) The other Rules of procedures of the Council shall be as determined by the Council itself.

6. Protection and Promotion of Consumer Rights : (1)For the purpose of protecting the rights and interests of consumers, every consumer shall have the following rights: (a) Right to be protected from the sale and supply of consumer goods and services which may harm life, body, health and property. (b) Right to be informed about the prices, attributes, quantity, purity, quality, etc. of consumer goods and services so as to be safe from unfair trade practices. (c) Right to be assured of an opportunity to choose consumer goods and services at competitive prices as far as possible. (d) Right to be assured that an appropriate agency will hear matters concerning the protection of the rights and interests of consumers. (e) Right to be heard and compensated against exploitation and grevances……. hardships resulting from unfair trade practices. (f) Right to consumer education. (2) Government of Nepal shall issue necessary directives to the Council in order to create an atmosphere favourable for the protection and promotion of the rights of consumers mentioned in Sub-Section (1).

7. Prohibition to Influence Demand, Supply or Price : No one shall influence the demand, supply and price of any of the consumer goods or services by taking any of the following actions in collusion with others: (a) By fixing the quota of raw materials needed for any of the consumer goods, or reducing the production of any of the consumer goods, or taking any other similar actions. (b) By hoarding any of the consumer goods or service or otherwise creating an artificial shortage, or selling and supplying such goods or services at specified times or places only, or taking any other similar actions.

8. Power to Systematize and Control Supply of Consumer Goods and Services:

(1) For the purpose of protecting the rights and interests of consumers, Government of Nepal shall exercise the following powers in order to systematize, control and regulate the supply of consumer goods and services:

(a) To formulate policies relating to the quality, price and the supply system of consumer goods or services.
(b) To formulate action plans in connection with the monitoring, prevention and control of unfair trade practices and monopolies which are likely to harm the rights and interests of consumers, and implement such plans.
(c) To analyze and review the situation in respect to the demand and supply of consumer goods consumed within the country.
(d) To make necessary arrangements for checking any undesirable increase in prices by producers, vendors or distributors of consumer goods.
(e) To discourage unfair trade practices which are likely to create shortages through artificial or other improper means.

(2) Government of Nepal shall make necessary arrangements in order to effectively implement the provisions concerning the protection of the rights and interests of consumers, regulation of the supply system, and control of the prices and quality of consumer goods and services.

9. Particulars to be Mentioned in Consumer Goods : A producer shall compulsorily mention the following particulars on the labels of consumer goods: (a) Name and address of the producer, and registration number of the industry. (b) In the case of consumer goods such as food and medicines, their ingredients as well as their quantity and weight. (c) Quality of consumer goods whose quality has been determined, if any. (d) Method of consuming consumer goods and possible impact of such consumption. (e) Price, batch number, production date and expiry date of the consumer goods. (f) In the case of consumer goods such as electronic goods, hardware and machinery, guarantee thereof, date of guarantee, and other necessary matters. (g) In the case of consumer goods which are inflammable, dangerous or fragile, precautions for their safety. (h) Other particulars as prescribed.

10. Prohibited Actions Regarding Consumer Goods or Services: No one shall take or cause to take any of the following actions in respect to any of the consumer goods or services:
(a) To produce, sell, supply, export or import a sub-standard consumer goods.
(b) To imitate any of the consumer good in such a manner as to mislead consumers.
(c) To sell or supply any of the consumer goods or services by making false or misleading claim that the consumer goods or services are separate one or by describing the substandard consumer goods or services as of higher standard.
(d) To engage in unfair trade practices in such a manner as to make false or misleading publicity or advertisements relating to the use, usefulness, or efficacy of any of the consumer goods or services.
(e) To produce, sell or supply any of the consumer goods or services which may cause harm to the health of the consumers’.
(f) To take such other actions as prescribed.

11. Standard of Consumer Goods or Services :
(1) In case the limits of the quality or quantity of any ingredient to be used in any of the consumer goods or services have been determined, Government of Nepal shall determine the standard of such good or service according to the prescribed procedures.
(2) Government of Nepal shall publish a notice of the determination of the standard of any of the goods and services under Sub-section (1) in the Nepal Gazette.

12. Price Lists to be Kept : Every vendor shall keep at a conspicuous place of shop a price-list of all consumer goods sold and supplied by him/her, explicitly mentioning its wholesale and retail prices.

13. Power of Government of Nepal to Conduct Inquiry and Inspections : (1) In case there is a reasonable ground to believe that any person is engaging in any unfair trading activity in such a manner as to adversely affect the rights and interests of consumers, or affecting the price and the supply system of the consumer goods or services by exercising a monopoly or through any other means, or producing or selling sub-standard goods, or taking any action which is contrary to this Act or the Rules framed hereunder, Government of Nepal may conduct or cause to conduct necessary inquiry and inspection.
(2) Government of Nepal shall take necessary action according to prevailing laws against any producer, dealer, agent, vendor, individual or institution found guilty through inquiry and inspection conducted under SubSection (1).

14. Power to Appoint or Designate Inspection Officer : Government of Nepal may appoint Inspection Officer or designate any officer to work in that capacity in the prescribed manner in order to monitor the supply of qualitative consumer goods or services to consumers in a simple manner and at fair prices by making the market and supply systems effective.

15. Powers of Inspection Officers to Inspect, Inquiry or Search : (1) In case, there is a reasonable ground to believe that any of the consumer goods or services which is not safe, efficacious or below the standard is being produced, sold or supplied, or that any action is being taken in violation of this Act or the Rules framed hereunder, at any place, the Inspection Officer may inspect, conduct inquiry or search such place. (2) In case, it is found in the course of an inspection, inquiry or search conducted under Sub-section (1) that any of the goods or services which is not safe, efficacious or below the standard is being produced, sold or supplied, or that actions are being taken in violation of this Act or the Rules framed hereunder, the Inspection Officer shall take a sample of such goods (or service) in the prescribed manner and impose a ban on the production and sale or supply of such goods or services for a prescribed period. (3) Reports of actions taken by the Inspection Officer under Sub-section (2) shall be submitted to Government of Nepal within three days. (4) The procedures to be adopted by the Inspection Officer while conducting inspection, inquiry or search shall be as prescribed. (5) The other functions, duties and powers of Inspection Officer, and provisions concerning the implementation of the reports submitted by them, shall be as prescribed.

16. Testing of Consumer Goods : Samples of consumer goods taken by an Inspection Officer under Section 15 shall be sent to the laboratory for a test within the prescribed time-limit.

17. Sub-Standard Consumer Goods to be Confiscated: In case any of the consumer goods is found to be of sub-standard following the test of its sample at the laboratory where it is sent under Section 16, it shall be confiscated.

18. Penalties : A person who commits or cause to commit the following Act shall be punished as follows, depending on the degree of offense:

(a) A person who commits or cause to commit any Act in violation of Section 7 shall be punished with an imprisonment for a term not exceeding three years, or with a fine not exceeding Fifty Thousand Rupees or with both.

(b) A person who commits or cause to commit any Act in violation of Clause (a) of ∝ ………..Section 9 shall be punished with imprisonment for a term not exceeding two years, or with a fine not exceeding Thirty Thousand Rupees or with both.

(c) A person who commits or cause to commit any Act in violation of Clause (a) of Section 10 shall be punished with imprisonment for a term not exceeding three years, or with a fine not exceeding Fifty Thousand Rupees or with both.

(d) A person who commits or cause to commit any Act in violation of Clauses (b), (c) and (d) of Section 10 shall be punished with imprisonment for a term not exceeding five years, or with a fine not exceeding One Hundred Thousand Rupees or with both.

(e) A person who commits or cause to commit any Act in violation of Clause

(e) of Section 10 shall be punished as follows: (1) If there is a threat to life, for a term not exceeding fourteen years, or with a fine not exceeding Rs 500,000, or with both. (2) In case the strength of any organ of the body is likely to be reduced or lost, with imprisonment for a term not exceeding ten years, or with a fine not exceeding Rs 500,000, or with both. (3) In other circumstances, with imprisonment for a term not exceeding five years, or with a fine not exceeding Rs 300,000, or with both.

(f) Any person who takes or instigates others to take any action, other than those mentioned above, which violates tact or the Rules framed under this Act shall be punished with imprisonment for a term not exceeding two years, or with a fine not exceeding Rs 200,000, or with both.

19. Government of Nepal to be the Plaintiff : Government of Nepal shall be the plaintiff in cases under this Act.

20. Investigation and Filing of Lawsuits : (1) Lawsuits relating to offenses punishable under this Act shall be investigated by Inspection Officers and lawsuits shall be filed with the concerned District Court within 35 days from the date of completion of such investigations. (2) While investigating and filing lawsuits under Sub-section (1), an Inspection Officer may seek the opinion of the Government Attorney, and such cases shall be defended by the Government Attorney.

21. Summary Trial Procedure to be Adopted : The procedure mentioned in the Summary Procedure Act, 1972 shall be adopted in the process and disposal of lawsuits filed under this Act.

22. Claims for Compensation May be Made: In case any consumer suffers a loss or damage of any kind as a result of the sale of any consumer good or service contrary to this Act, such consumer, or any Consumer Association on behalf, may file a complaint with the Compensation Committee within 35 days from the date of such loss or damage, requesting for the realization of compensation from the person who has sold or supplied such consumer good or service.

23. Compensation Committee :

(1) A Compensation Committee as follows shall be formed in each district in order to conduct inquiry into complaints filed under Section 22 and realize compensation in consideration of losses or damages suffered by the consumer:

(a) Chief District Officer – Chairperson
(b) District Attorney – Member
(c) District Medical Officer – Member
(d) A representative of the District Consumers Association designated by Government of Nepal – Member
(e) Representative, District Chamber of Commerce and Industry – Member
(f) An officer designated by Government of Nepal – Member-Secretary

(2) The Compensation Committee shall take a decision on a complaint filed in connection with compensation within the prescribed time-limit. The working procedure to be followed while taking decision shall be as prescribed.

24. Realization of Compensation : In case the Compensation Committee holds that a consumer has suffered a loss or damage following inquiry into a complaint filed for compensation under Section 22, it shall arrange for the payment of compensation on the basis of such loss or damage to the concerned consumer or heir.

25. Appeal : Any person who is dissatisfied with the decision taken by the Compensation Committee under Section 24 may file an appeal with the concerned Appellate Court within 35 days from the date of such decision.

26. Power to Initiate Lawsuits Under the Prevailing Laws : In case any action which is an offense under this Act is also an offense under any other prevailing Nepal Law, this Act shall not be deemed to have prejudiced the right to initiate lawsuits under any other law.

27. Power to Form Sub-Committees: (1) Government of Nepal or the Council may form necessary Sub-Committees in order to fulfill the objectives of this Act. (2) The functions, duties, powers and procedures of a Sub-Committee formed under Sub-Section (1) shall be as prescribed by Government of Nepal or the Council.

28. Delegation of Powers: Government of Nepal or the Council may delegate some of the powers vested in it under this Act to any Sub-Committee formed under Section 27, or to any officer as it requires.

29. Immunity for Actions Taken With Bona fide Motives : Inspection Officers, Compensation Committee or employee of the Government of Nepal shall not be held personally liable for any action taken by him/her with good intentions in the course of fulfilling their duties under this Act or the Rules framed hereunder. 30 Power to Frame Rules : Government of Nepal may frame necessary Rules in order to implement the objectives of this Act.

Preamble

Act number 25 of the year 2055 (1999) An Act made to manage and expand construction business

Preamble: Whereas, it is expedient to make necessary provisions on the operation of construction business by promoting and developing construction entrepreneurs so as to maintain required quality standards of public construction works; Be it enacted by the Parliament in the twenty-seventh year of reign of His Majesty King Birendra Bir Bikram Shah Dev.

Chapter-1 Preliminary

Chapter-1 Preliminary

1. Short title and commencement:

(1) This Act may be called as the “Construction Business Act, 2055 (1999). (2) It shall come into force on the 1st day of Baishakh 2056 (14 April 1999).

2. Definitions: Unless the subject or the context otherwise requires, in this Act:

(a) “public construction works” means any kinds of construction related works to be carried out by Government of Nepal and anybody corporate fully owned by Government of Nepal, and this term also includes reconstruction and maintenance works.

(b) “construction entrepreneur” means a firm or company registered under the prevailing law with an object to carry out construction business.

(c) “foreign construction entrepreneur” means a firm or company which is registered in a foreign country and carries out construction business related works.

(d) “license” means a license to be issued pursuant to Section 4 to carry out public construction works.

(e) “temporary license” means a license to be issued pursuant to Section 6 to a foreign construction entrepreneur to carry out public construction works.

(f) “body corporate” means a body corporate fully owned by Government of Nepal.

(g) “technician” means a technical employee deputed by Government of Nepal and the concerned body corporate to look after and supervise the public construction works.

(h) “quality standard” means the quality standard as mentioned in an agreement concluded between the proponent and the acceptor as per a proposal invited for the construction works or in any documents, drawings, designs and specifications forming an integral part of such agreement.

(i) “council” means the Construction Business Development Council formed pursuant to Section 13.

(j) “committee” means the execution committee formed pursuant to Section 15. (k) “prescribed” or “as prescribed” means prescribed or as prescribed in the Rules framed under this Act.