Arbitration in Nepal

1641 Words Jan 7th, 2015 7 Pages
Dispute Resolution:
Arbitration Law in Nepal
Anamol Bisht
Kathmandu University School of Management

In an event of the breach of any contract, legal remedy should be provided to the parties that are involved in the agreement. However, instead of going directly to the court of law, there are specific remedies that serve as an alternative dispute resolution and one such alternative is arbitration. In arbitration, an arbitrator (a neutral third party or experts) renders a decision based on the disputes they are presented with. Here, the third party’s decision is legally binding, as it is an alternative dispute resolution (ADR) to the judicial system of the nation. Except for a few special cases, the court of law will reject any disputes
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As the arbitration process acts as the alternative to the judicial system, it actually carries several characteristics of a court system. “In the typical hearing format, the parties present opening arguments to the arbitrators and state what remedies should or should not be granted. Next, evidence is presented, and witnesses may be called and examined by both sides” (Clarkson, 2001). Also like judges in the court system, arbitrators are anointed with certain powers exclusive to them. In the Arbitration Act Section 21, the arbitrators will have powers such as but not limited to the summoning of parties and required documents, record witness statements, appoint and seek expert opinions, inspection of related materials, issuing order, issuing certified copy of document. Hence, it is evident that this system is the ADR to the judicial system. The Act also provides procedures on how the arbitration is to be conducted outside the judicial jurisdiction. The procedures mentioned in Chapter 5 of the Arbitration Act gives an insight of the methodology of approaching a disputed breach of contract via the arbitration clause. Chiefly, within 120 days of the appointment of arbitrators, a decision on the case and the verdict will be the decision of the majority, similar to that of a court case. Nonetheless, if in case there is no majority, the chief arbitrator will declare his or

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