Mediation in Nepal

Quick Facts

• Legal Framework: Mediation in Nepal follows the Mediation Act 2068 (2011), which provides the framework for settlement of disputes through community mediation. The Supreme Court of Nepal adopted court referred mediati...
• Cultural Approach: Nepal's cultural approach to mediation is deeply rooted in traditional conflict resolution methods. Nepal has a rich tradition of peaceful conflict resolution dating back centuries, from the Panchayat...
• Typical Costs: Specific fee structures for mediation in Nepal are not detailed in available sources. The Mediation Council and the Government of Nepal work on simplification of mediation procedures and reform of pre...

Mediation Research

Legal Framework

Mediation in Nepal follows the Mediation Act 2068 (2011), which provides the framework for settlement of disputes through community mediation. The Supreme Court of Nepal adopted court referred mediation through the District Court Rules 1995 (2052 B.S.) via the fourth amendment in 2003. The Administration of Justice Act 2073 and the National Civil Procedure Code 2074 also contain ADR provisions. Arbitration follows the Arbitration Act 2055 (1999) and Arbitration Rules 2059 (2003), which are the principal laws governing arbitration in Nepal. The Nepalese Arbitration Law was influenced by the UNCITRAL Model Law, with some provisions borrowed from UNCITRAL Law. Nepal acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards on March 4, 1998. The Constitution of Nepal provides the overarching legal framework. Nepal has a rich tradition of peaceful conflict resolution dating back centuries, from the Panchayat and Panchali systems of ancient times to modern statutory frameworks.

Court System

Nepali courts actively promote mediation through court referred mechanisms. The Supreme Court adopted court referred mediation through the District Court Rules 1995 (2052 B.S.) via the fourth amendment in 2003. Courts can order disputes to be mediated if they deem mediation suitable and both parties agree. If a case is already sub judice, parties may jointly request the adjudicating body to allow mediation at any stage, and the court must issue an order accordingly. However, if the dispute includes any issue that requires a legal ruling and cannot be resolved through mediation, the court cannot issue an order for mediation. Once mediation starts, no adjudicating body shall intervene in the case unless otherwise specified by law until mediation concludes. The courts refer cases to mediation and some are settled to reach win-win outcomes. The legal system now formally recognises and promotes amicable settlement through various mechanisms including negotiation, mediation, and conciliation.

Mediator Regulations

The Mediation Act 2068 establishes qualification requirements and conduct standards for mediators. Mediators must be certified to serve as mediators and are selected from lists of eligible persons. A mediator involved in a dispute cannot subsequently serve as a lawyer, arbitrator, or judge in the same case. Mediators must adhere to principles including: acting with complete impartiality; avoiding favoritism, bias, or prejudice; refraining from using fear, coercion, deception, or manipulation; not engaging in financial dealings with parties until dispute resolution; ensuring compliance with the Act and related Rules; avoiding financial involvement or actions that could lead to conflict of interest; and following the prescribed code of conduct. Mediators may be removed for failure to perform duties, acting unfairly or fraudulently, repeated mistakes or irregularities, unjustified delays or reluctance, or unauthorised breach of confidentiality that harms a party's interests. The Mediation Council provides suggestions to the Government of Nepal for simplification of mediation procedures and reform of prevailing laws.

Cultural Approach

Nepal's cultural approach to mediation is deeply rooted in traditional conflict resolution methods. Nepal has a rich tradition of peaceful conflict resolution dating back centuries, from the Panchayat and Panchali systems of ancient times to modern statutory frameworks. These traditional systems emphasised community-based dispute resolution and consensus-building. The modern mediation framework builds upon this cultural heritage, with the Mediation Act 2068 incorporating community mediation based on traditional procedures. The emphasis on mutual understanding, cooperation, and amicable settlement without resorting to lengthy adversarial court procedures aligns with traditional Nepali values of harmony and community cohesion. The legal system formally recognises and promotes amicable settlement through various mechanisms, reflecting the cultural preference for resolving disputes through dialogue and compromise rather than confrontation.

Typical Costs

Specific fee structures for mediation in Nepal are not detailed in available sources. The Mediation Council and the Government of Nepal work on simplification of mediation procedures and reform of prevailing laws for wide use of mediation procedures. The emphasis on mediation as an alternative to lengthy and costly court procedures suggests that mediation is designed to be cost effective. Arbitration costs would be determined by the rules of the arbitral institution chosen by parties. The Public Procurement Monitoring Office prescribes arbitration as a default dispute resolution method for government procurement agreements, suggesting standardised fee structures may exist for such cases. Specific fee schedules for mediation are not documented in available sources, but the system is designed to reduce the burden on the formal court system and provide accessible justice.

Sources

• Mediation Council मेलमिलाप परिषद् (organisation)
• Mediation in Nepal: Legal Process & ADR Rules (2025 Guide) (organisation)
• Arbitration Law in Nepal: Highlights of Arbitration Act of Nepal (organisation)
• Alternative Dispute Resolution in Nepal (organisation)
• Amicable Dispute Resolution in Nepal – Sun Shine Lawfirm (organisation)
• Mediation Act 2068 (organisation)
• Cultural Issues And Mediation - Rising Nepal Daily (organisation)
• Alternative Dispute Resolution (ADR) in Nepal (organisation)
• New York Convention - Nepal (organisation)
• Singapore Convention on Mediation - Jurisdictions (organisation)

States and Regions