Enforcement Of Foreign Arbitral Awards In Nepal: A Jurisdictional Guide (2025)

Nepal is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards ("New York Convention"), having acceded in 1998 with both reciprocity and commercial reservations. Under the Arbitration Act, 1999 as amended by the 2025 Ordinance ("Arbitration Act"), Nepalese courts recognize and enforce foreign arbitral awards rendered in commercial matters, provided certain statutory and procedural conditions are fulfilled.

While procedural reforms in recent years have improved the enforceability of domestic arbitral awards, these reforms have yet to be fully extended to foreign awards. This guide outlines how foreign awards are enforced in Nepal, the applicable limitations, and how courts approach challenges to enforcement.