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Specialized Courts and Tribunals in Nepal: Jurisdiction, Composition and Functions

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Specialized Courts and Tribunals in Nepal: Jurisdiction, Composition and Functions
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In addition to the three-tier regular court system — Supreme Court, High Courts, and District Courts — Nepal's judicial system includes several specialized courts and tribunals established to handle specific types of cases that require specialized legal expertise.

Article 152 of the Constitution of Nepal, 2015 authorizes the formation of specialized courts, judicial bodies, or tribunals to try and settle specific types and nature of cases as provided by federal law. However, no specialized court can be formed for any specific individual case, and no body other than a court can impose criminal sentences involving imprisonment exceeding one year. All specialized courts and tribunals operate under the supervisory authority of the Supreme Court.

This guide provides a comprehensive overview of each specialized court and tribunal in Nepal, covering their legal basis, composition, jurisdiction, appeal pathways, and practical relevance.

Overview: Specialized Courts and Tribunals at a Glance

Court/TribunalEstablished ByPrimary JurisdictionLocationAppeals Go To
Special CourtSpecial Court Act, 2059 (2002)Corruption, money laundering, banking offences, revenue offencesKathmanduSupreme Court
Labor CourtLabor Act, 2074 (2017)Labor disputes, employment rights, trade union mattersKathmanduSupreme Court
Revenue TribunalRevenue Tribunal Act, 2031 (1974)Tax disputes: income tax, VAT, customs, excise duty4 locations across NepalSupreme Court (special leave)
Administrative CourtAdministrative Court Act, 2076 (2019)Departmental actions and punishments against civil servantsKathmandu (nationwide jurisdiction)Supreme Court
Debt Recovery TribunalDebt Recovery Act, 2058 (2002)Recovery of bank and financial institution loansMultiple locationsDebt Recovery Appellate Tribunal → Supreme Court
Foreign Employment TribunalForeign Employment Act, 2064 (2007)Foreign employment disputes, worker compensation claimsKathmanduSupreme Court (within 35 days)
Commercial BenchHigh Court RegulationsBanking, insurance, intellectual property, arbitration, company disputesUnder each High CourtSupreme Court
Military CourtNepalese Army Act, 2063 (2006)Military offences: discipline, duty, loyaltyAs established by the ArmySupreme Court

Special Court of Nepal

The Special Court is Nepal's primary anti-corruption judicial body, established under the Special Court Act, 2059 (2002). It handles the most serious cases involving public officials and financial crimes.

Composition

PositionDetails
JudgesPanel of at least 3 judges appointed by the Judicial Council from High Court or District Court judges with minimum 5 years of service
ChairpersonOne judge designated as Chairperson by the Judicial Council
Retirement Age64 years
LocationKathmandu

Jurisdiction

The Special Court has jurisdiction over cases related to corruption and abuse of authority by public officials (referred by the Commission for the Investigation of Abuse of Authority — CIAA), money laundering and financial crimes under the Money Laundering Prevention Act, banking offences under the Banking Offence and Punishment Act, diversion of public funds, serious corporate fraud and economic misconduct, and revenue offences as specified by the government.

The Special Court also has appellate jurisdiction over cases decided by the Revenue Tribunal. Decisions of the Special Court can be appealed to the Supreme Court.

Labor Court

The Labor Court was established under the Labor Act, 2074 (2017) to handle disputes arising from employment relationships, worker rights, and labor relations.

Composition

PositionDetails
Chairperson1, appointed by the Government on the recommendation of a tripartite committee
Members2, representing employers' associations and workers' trade unions respectively
Recommending CommitteeIncludes the Minister for Labour, representatives from Nepal Trade Union Congress, General Federation of Nepalese Trade Unions, Confederation of Nepalese Industries, FNCCI, and the Ministry of Law

Jurisdiction

The Labor Court exercises both original jurisdiction (cases filed directly) and appellate jurisdiction (appeals against decisions of the Labor Relations Committee or Mediator). Cases include wrongful dismissal and termination disputes, wage and benefit claims, trade union disputes and collective bargaining matters, workplace safety and conditions, and enforcement of labor rights under the Labor Act. Decisions can be appealed to the Supreme Court within 35 days.

Revenue Tribunal

The Revenue Tribunal is established under the Revenue Tribunal Act, 2031 (1974) to adjudicate disputes between taxpayers and government revenue authorities.

Composition

PositionDetails
Members3 per tribunal: Law Member, Revenue Member, and Account Member
Number of Tribunals4 across Nepal
Primary LocationKathmandu (main tribunal)

Jurisdiction

The Revenue Tribunal hears appeals against decisions by tax officers and revenue departments on matters including income tax assessments and reassessments, value added tax (VAT) disputes, customs duty matters, excise duty disputes, property valuation, and penalties and fines imposed by revenue authorities.

The tribunal provides taxpayers an opportunity to challenge administratively decided cases before an independent body. Appeals from the Revenue Tribunal go to the Special Court, and from there to the Supreme Court on special leave.

Administrative Court

The Administrative Court was established under the Administrative Court Act, 2076 (2019). It is a relatively new addition to Nepal's specialized court system.

Key Features

FeatureDetails
LocationKathmandu, with nationwide jurisdiction
Primary FunctionHears appeals against departmental actions and punishments awarded to civil servants
Appeal PathwayDecisions appealable to the Supreme Court

The Administrative Court addresses grievances of government employees who believe they have been unfairly treated through departmental proceedings, including wrongful suspension, demotion, transfer, salary withholding, or termination.

Debt Recovery Tribunal

The Debt Recovery Tribunal operates under the Debt Recovery Act, 2058 (2002) and plays a critical role in Nepal's financial system by facilitating the recovery of loans from banks and financial institutions.

Jurisdiction

The Debt Recovery Tribunal handles cases involving recovery of outstanding loans from borrowers, disputes between banks/financial institutions and their borrowers, enforcement of security interests (mortgages, pledges), and settlement of dues owed to financial institutions.

The tribunal also offers mediation services to help borrowers and creditors settle disputes amicably before formal recovery proceedings. A Debt Recovery Appellate Tribunal hears appeals against Debt Recovery Tribunal decisions, with further appeal possible to the Supreme Court.

Foreign Employment Tribunal

The Foreign Employment Tribunal was established under the Foreign Employment Act, 2064 (2007) to address the legal needs of Nepal's large migrant worker population.

Composition

PositionDetails
Chairperson1, appointed by the Government on the recommendation of the Ministry of Labour
Members2, with a law degree and at least 7 years of experience in foreign employment matters
Term of Office4 years

Jurisdiction

The Tribunal has original jurisdiction over disputes between foreign employment agencies and workers, claims for compensation by workers against recruitment agencies or employers, offences under the Foreign Employment Act, and disputes involving employers of Nepali workers abroad. Decisions can be appealed to the Supreme Court within 35 days.

Commercial Bench (High Court)

The Commercial Bench operates under each High Court as a specialized bench with separate jurisdiction for commercial disputes.

Jurisdiction

The Commercial Bench has first-instance jurisdiction over specific commercial cases including banking disputes under the Banking Offence Act, insurance disputes, intellectual property matters under the Patents, Designs, and Trademarks Act, arbitration matters, company law disputes under the Companies Act, insolvency cases under the Insolvency Act, and secured transaction disputes. Appeals from the Commercial Bench go to the Supreme Court.

Military Court

The Military Court operates under the Nepalese Army Act, 2063 (2006) and the Nepalese Army Regulations, 2063 (2006). It has jurisdiction over military offences committed by members of the Nepalese Army, including breaches of discipline, dereliction of duty, insubordination, and other military-specific offences. The Military Court consists of a Chief Military Judge (appointed from retired judges or senior advocates) and other Military Judges (appointed from army officers).

Constitutional Basis for Specialized Courts

Article 152 of the Constitution of Nepal, 2015 establishes two important safeguards for specialized courts:

SafeguardProvision
No ad hoc courtsNo specialized court, judicial body, or tribunal shall be formed for any specific individual case — ensuring the prohibition of ad hoc or kangaroo courts
Imprisonment limitationNo criminal offence involving imprisonment for more than one year shall fall under the jurisdiction of a body other than a court, specialized court, military court, or judicial body

These constitutional safeguards ensure that while specialized courts can handle specific types of cases, they cannot be used as instruments of targeted prosecution, and serious criminal matters remain within the jurisdiction of properly constituted courts.

Specialized Courts vs Regular Courts

FeatureRegular Courts (Supreme, High, District)Specialized Courts and Tribunals
JurisdictionGeneral — handles all types of cases within their levelLimited — handles only specific case types as defined by their establishing Act
EstablishmentEstablished directly by the ConstitutionEstablished by specific federal laws under constitutional authorization
JudgesAppointed by the President on Judicial Council recommendationVaries — some from Judicial Council, some from Government recommendation
Subject Matter ExpertiseGeneral legal expertiseSpecialized knowledge in their specific domain (tax, labor, corruption, etc.)
SupervisionSupreme Court supervises all lower courtsAll specialized courts operate under the Supreme Court's supervisory authority
AppealDistrict → High Court → Supreme CourtUsually directly to the Supreme Court (bypassing intermediate levels)

Quasi-Judicial Bodies

Beyond specialized courts, Nepal also has several quasi-judicial bodies that exercise limited judicial powers. These include bodies established under various Acts such as the Local Administration Act, 2028 (1971), the Commission for the Investigation of Abuse of Authority (CIAA), and the National Information Commission. Quasi-judicial bodies are not authorized to hear criminal cases where the imprisonment term exceeds one year. Their decisions are typically appealable to the regular courts or specialized tribunals.

Which Court Should You Approach?

Choosing the right court or tribunal is essential for any legal proceeding. Here is a quick reference:

If Your Case InvolvesFile At
Divorce, child custody, family disputesDistrict Court
Property disputes, contract disputes, civil claimsDistrict Court
Criminal offences (up to 10 years imprisonment)District Court
Corruption, abuse of authority, money launderingSpecial Court
Tax disputes (income tax, VAT, customs, excise)Revenue Tribunal
Employment termination, labor rights, wage disputesLabor Court
Bank loan recoveryDebt Recovery Tribunal
Foreign employment disputesForeign Employment Tribunal
Civil servant departmental actionsAdministrative Court
Banking, IP, company law, insolvencyCommercial Bench (High Court)
Minor civil/criminal cases (fast-track)Summary Proceedings Court

Filing in the wrong court or tribunal wastes time and money, as the case will need to be refiled in the correct forum. When in doubt, consulting a qualified lawyer can help determine the correct jurisdiction for your specific matter.

Disclaimer: This article provides general information about the specialized courts and tribunals in Nepal. It should not be construed as specific legal advice. For guidance on which court has jurisdiction over your case, consult a qualified legal professional.

Frequently Asked Questions

Nepal has several specialized courts and tribunals including the Special Court (corruption, money laundering), Labor Court (employment disputes), Revenue Tribunal (tax disputes), Administrative Court (civil servant matters), Debt Recovery Tribunal (bank loan recovery), Foreign Employment Tribunal, Commercial Bench (under High Courts), and the Military Court.

The Special Court is Nepal's primary anti-corruption judicial body established under the Special Court Act, 2059 (2002). It handles cases of corruption, abuse of authority by public officials, money laundering, banking offences, and revenue offences. It consists of at least 3 judges and is located in Kathmandu. Appeals go to the Supreme Court.

The Revenue Tribunal adjudicates disputes between taxpayers and government revenue authorities. It handles appeals against decisions on income tax, VAT, customs duty, excise duty, and property valuation. There are 4 Revenue Tribunals in Nepal. Appeals go to the Special Court, and from there to the Supreme Court.

The Labor Court handles employment and labor disputes including wrongful dismissal, wage and benefit claims, trade union disputes, collective bargaining matters, and workplace safety issues. It has both original jurisdiction (direct filings) and appellate jurisdiction (appeals from Labor Relations Committee or Mediator decisions). Appeals go to the Supreme Court within 35 days.

The Debt Recovery Tribunal facilitates the recovery of outstanding loans owed to banks and financial institutions. It handles disputes between lenders and borrowers, enforcement of security interests like mortgages, and also offers mediation services. A Debt Recovery Appellate Tribunal hears appeals, with further appeal possible to the Supreme Court.

The Administrative Court was established under the Administrative Court Act, 2076 (2019). Located in Kathmandu with nationwide jurisdiction, it hears appeals against departmental actions and punishments awarded to civil servants, including wrongful suspension, demotion, transfer, or termination. Decisions are appealable to the Supreme Court.

The Foreign Employment Tribunal handles disputes related to Nepal's migrant worker population under the Foreign Employment Act, 2064 (2007). It covers disputes between recruitment agencies and workers, compensation claims, and offences under the Act. The Tribunal consists of a Chairperson and 2 Members with 4-year terms. Appeals go to the Supreme Court within 35 days.

The Commercial Bench is a specialized bench operating under each High Court with first-instance jurisdiction over commercial cases including banking disputes, insurance matters, intellectual property, arbitration, company law, insolvency, and secured transactions.

Yes. Most specialized court and tribunal decisions can be appealed to the Supreme Court. Some tribunals (like the Debt Recovery Tribunal) have an intermediate appellate tribunal before the Supreme Court. Appeal deadlines vary — typically 35 days from the date of decision.

Regular courts (Supreme, High, District) have general jurisdiction over all types of cases. Specialized courts have limited jurisdiction restricted to specific case types defined by their establishing Act. Specialized courts often have subject-matter experts rather than general judges, and their appeals typically go directly to the Supreme Court.

No. Article 152 of the Constitution explicitly prohibits the formation of any specialized court, judicial body, or tribunal for a specific individual case. This constitutional safeguard prevents the creation of ad hoc or kangaroo courts and ensures that all judicial proceedings follow established institutional frameworks.

Tax disputes — including income tax, VAT, customs duty, and excise duty — should be filed at the Revenue Tribunal. There are 4 Revenue Tribunals in Nepal, with the main one in Kathmandu. The Tribunal hears appeals against assessments and penalties imposed by tax officers and the Inland Revenue Department.

Labor disputes should be filed at the Labor Court. This includes cases of wrongful dismissal, wage claims, trade union disputes, and other employment-related matters under the Labor Act, 2074. The Labor Court handles both original filings and appeals from the Labor Relations Committee or Mediator.

No. Divorce cases, child custody, alimony, and property partition disputes are handled by the regular District Courts, not specialized courts. Family law matters are governed by the Muluki Civil Code, 2074 and fall within the District Court's general jurisdiction.

Quasi-judicial bodies are institutions that exercise limited judicial powers but are not formally constituted as courts. Examples include the CIAA, National Information Commission, and bodies under the Local Administration Act. They cannot impose imprisonment exceeding one year. Their decisions are typically appealable to regular courts or specialized tribunals.

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