Nepal Arbitration Act, 2055 (1999)

Date of authentication and publication:
2 Chaitra 2056 (April 15, 1999)


The Act Amending Some Nepal Acts, 2064 2064.5.9
Act No. 1 of the year 2056 (1999)
An act made to make legal provision on arbitration
Preamble: Whereas it is expedient to update the prevailing legal provisions relating to arbitration, Now, therefore, be enacted by the Parliament in the 27th year of the reign of His Majesty King Birendra Bir Bikram Shah Dev.



Chapter 1
Preliminary (1999)

Short Title and Commencement:
This Act may be called as "Arbitration Act, 2056 (1999)."
It shall come into force immediately.

Definitions: In this Act, unless the subject or the context otherwise requires,-
"Agreement" means a written agreement reached between the concerned parties for a settlement through arbitration of any dispute concerning any specific legal issue that has arisen or may arise in the future under a contract or otherwise.

Explanation: For the purpose of this clause, the concerned parties shall be deemed to have entered into a written agreement in case any of the following documents exists:
Any contract containing provision for arbitration or any separate agreement signed in that connection.
Letter, telex, telegram or telefax message, or any other similar at time message exchanged through telecommunication media whose records can be maintained in a written form, between the concerned parties which provide for referring their disputes to arbitration.
In case any party has presented a claim for referring any dispute to arbitration and the objection to that claim submitted by the party objecting to that claim without rejecting the proposal for referring the dispute to arbitration.

"Party" means any party connected with arbitration.

"District Court" means the District Court of the place prescribed in the agreement as the place of arbitration, if any, and if no such place has been prescribed, the place where the dispute has arisen or where the arbitration proceedings have been conducted and decisions taken, or the territorial jurisdiction over the place where any party generally resides.

"Appellate Court" means the Appellate Court of the place prescribed in the agreement as the place of arbitration, if any, and if no such place has been prescribed, the place where the dispute has arisen or where the arbitration proceedings have been conducted and decisions taken, or the territorial jurisdiction over the place where any party generally resided.

"Dispute" means a dispute which can be settled through arbitration under this Act.

"Counter-claim" means a claim made by the Respondent on the Claimants.

"Rejoinder" means a claim to the counter-claim by the Claimants.

"Arbitrator" means an arbitrator appointed for the settlement of a dispute and the term also includes a panel of arbitrators.