Kshetry seeks reinstatement claiming that the government decision to reinstate Bijaya Nath Bhattarai after the later was cleared of corruption charges was not in accordance to law.
The government on Friday decided to replace him with Bhattarai.
Kshetry was appointed on January 15 by the then Maoist-led government after the removing Bhattarai as the Commission for Investigation of Abuse of Authority (CIAA) charged him and then NRB Executive Director Surendra Man Pradhan with financial embezzlement worth Rs 24.5 million.
Both Bhattarai and Shrestha were acquitted of the charges on July 15.
The Office of the Attorney General (AG) has recommended the government to reinstate Bhattarai through a cabinet decision after the Ministry of Finance had sought legal.
Bhattarai´s tenure for the post of governor will end in February next year.
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