Judiciary is a Hidden Player in Nepal’s Economic Progress

By Sampada Koirala
Published: October 30, 2024 07:50 AM

The state mainly has three organs: the executive, the legislative, and the judiciary. The third organ or branch - the judiciary - holds a significant position. Courts or judicial bodies exercise judicial powers. The principle of separation of powers emphasizes that judicial authority must be independent and distinct from the executive and legislative branches.

Nepal’s current constitution, in its preamble, commits to an independent, impartial, and competent judiciary and the rule of law. Part 11 of the constitution includes provisions regarding the judiciary. Article 126 guarantees that courts and judicial bodies will exercise judicial powers in Nepal as per the constitution, laws, and accepted principles of justice.

  1. Judicial Structure of Nepal 

Article 127 of the constitution establishes a three-tier court system comprising the Supreme Court, high courts, and district courts. Article 127(2) also allows the formation of other bodies at the local level, such as judicial bodies or alternative dispute resolution mechanisms, as needed by law, for case resolution.

1.1 Supreme Court 

Article 128 of the Constitution provides for establishing the Supreme Court. According to Article 128(1), there is only one Supreme Court in Nepal. The Supreme Court is the court of record, and, as per Article 128(2), all courts and judicial bodies except those explicitly stated otherwise in the constitution fall under the jurisdiction of the Supreme Court. The Supreme Court is also granted the final authority to interpret the constitution and laws.

The Supreme Court can inspect, supervise, and direct other courts, specialized courts, or judicial bodies. Article 129 allows for a Chief Justice and up to 20 other justices in the Supreme Court, with appointments made by the president based on recommendations from the Constitutional Council and the Judicial Council.

Article 133 further outlines the Supreme Court’s powers and functions. Under Article 137, a separate Constitutional Bench is provided to handle matters like disputes over the constitutionality of laws, between provinces, and election-related disputes. The court exercises extraordinary powers, including judicial review, and can issue writs such as habeas corpus, mandamus, prohibition, certiorari, and quo warranto.

1.2 High Courts 

According to Article 139, each province in Nepal has a high court. Each high court comprises a chief judge and the necessary number of other judges, as stipulated by the federal law. High courts hold broader authority than the previous appellate courts. Presently, there are seven high courts with nine locations and two temporary benches across the country, making up 18 structures within the high court system.

Article 144 and Section 8 of the Judicial Administration Act, 2073 grant the high courts powers similar to those of the Supreme Court regarding issuing writs and hearing cases.

1.3 District Courts

District courts are the first-instance courts in Nepal’s judicial structure. Article 148 of the constitution outlines their formation and authority. Every district has one district court, and judicial bodies formed at the local level by provincial laws also fall under the supervision of the district courts. District courts can inspect and direct these bodies and hear appeals.

Article 151 and Section 7 of the Judicial Administration Act outline the powers of district courts. They can hear habeas corpus applications, issue injunctions, and review decisions made by quasi-judicial or local judicial bodies.

1.4 Special Courts and Tribunals 

Article 152 of the constitution allows for the establishment of specialized courts and tribunals to handle specific types of cases as the federal law requires. Special courts, however, cannot be created for individual cases. Specialized courts and tribunals in Nepal include the Special Court, Administrative Court, Labor Court, Debt Recovery Tribunal, Revenue Tribunal, and Foreign Employment Tribunal.

The hierarchical structure of courts allows for error correction and review, ensuring that justice can be corrected and improved at higher levels. This also helps maintain public trust in the judicial process and prevents arbitrary or biased decisions.

  1. Role of the Judiciary in Economic and Development Activities 

As noted, courts at all three levels can issue injunctions or similar orders in response to complaints about individual or community rights violations or more extensive public interests. Often, such complaints seek interim orders to halt ongoing development activities, potentially causing delays in project completion.

While the judiciary is sometimes criticized for hindering development due to delays in case resolutions, courts have also played a positive role in facilitating development by resolving disputes between communities, local governments, and provinces. Court decisions have allowed many stalled development projects to move forward.

Moreover, in cases where proposed development projects might significantly impact public health or the environment, court rulings have prevented irreparable harm and encouraged the adoption of mitigation measures.

3. Problems and Solutions 

3.1 Problems

No institution is free from problems, and Nepal's judiciary is no exception. Some of the main issues facing the judiciary in Nepal include:

3.2 Solutions

To address these issues and improve the efficiency and reliability of Nepal’s judicial system, the following steps are recommended:

4. Conclusion

Nepal's justice system often operates behind the scenes, but it is undeniably a hidden player in the nation's economic progress. Though less visible, its influence is critical in creating the legal environment necessary for economic stability and growth. The judiciary supports key sectors that fuel the economy by quietly resolving disputes, protecting investments, and maintaining the rule of law. However, ongoing reforms are essential to unlock its full potential as an enabler of development. The key to Nepal’s prosperity may lie in the halls of justice, waiting to be fully realized.