Navigating Arbitrability In Nepal: Key Considerations For Drafting Arbitration Clauses

Arbitrability, or the scope of issues that can be resolved through arbitration rather than traditional court litigation, is regulated in Nepal by the Arbitration Act 1999 (2055) ("Arbitration Act") the National Civil Code 2017 (2074) ("Civil Code") National Criminal Code 2017 (2074) ("Criminal Code") and relevant international conventions. This article delves into the intricacies of Nepalese law on arbitrability, highlights judicial interpretations, and provides drafting considerations for ensuring foreign and domestic awards are enforceable in Nepalese courts.

Arbitrability Under Nepalese Law

The Arbitration Act lays the foundation for arbitration in Nepal, though it does not explicitly outline which disputes are non-arbitrable. Instead, it permits arbitration for disputes as specified by agreement. This broad scope permits arbitration for both civil and commercial disputes, provided the parties agree in writing.