chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Health Insurance Act, 2017

16. Meeting and Decision of the Board: (1) Meetings of the Board shall be held at least four times a year on such date, time and place as designated by the Chairperson as required.

(2) Notwithstanding anything contained in sub-section (1), in the absence of the Chairperson, the Member-Secretary may, in consultation with the members, convene a meeting of the Board.

(3) The Executive Director shall, in consultation with the Chairperson, provide notice along with the agenda of matters to be discussed in the Board meeting to all members at least three days before the date of the meeting.

(4) The meeting of the Board shall be chaired by the Chairperson, and in his/her absence, a member chosen from among the members present shall chair the meeting.

(5) If more than fifty percent of the members currently holding office in the Board are present, the quorum for the Board meeting shall be deemed to have been met.

(6) A decision of the majority shall prevail in the Board meeting, and in case of a tie, the person chairing the meeting shall have the casting vote.

(7) Concerned officials and experts on health insurance may be invited to the Board meeting.

(8) The decision of the Board meeting shall be certified by the Member-Secretary.

(9) Other procedures relating to the Board meeting shall be as determined by the Board. 17. May Form Sub-committee: (1) The Board may form a sub-committee under the coordination of a member as required in relation to its work.

(2) The functions, duties, powers and procedures of the sub-committee pursuant to sub-section (1) shall be as determined by the Board at the time of forming such sub-committee. Chapter-4

Chairperson, Member, Executive Director and Employees

18.
Health Insurance Act, 2017

Chapter-4

Chairperson, Member, Executive Director and Employees

18. Qualification for the Position of Chairperson and Member: Any person fulfilling the following qualifications may become the Chairperson or Member of the Board:-

(a) Nepali citizen,
(b) Having obtained at least a Bachelor's degree in any subject from a recognized educational institution and having at least seven years of experience in the relevant field in the case of Chairperson and at least five years in the case of Member,

Provided that for the Member pursuant to clause (d) of sub-section (2) of Section 13, must have completed a Master's level in medical science, public health, economics or financial management.
(c) Not convicted of an offense relating to corruption, rape, human trafficking and transportation, narcotic drug sale, distribution, export or import, money laundering, passport misuse, kidnapping, or other criminal offenses involving moral turpitude,
(d) Deleted by the Act to Amend Some Nepal Acts Relating to Good Governance Promotion and Public Service Delivery, 2081.
(e) Not being a director or foundational shareholder of any insurance company,

Explanation: For the purpose of this clause, "foundational shareholder" means a person who holds shares in their name amounting to one percent or more of the total paid-up capital of any insurance company.
(f) Not exceeding sixty-five years of age. 19. Functions, Duties and Powers of Chairperson: The functions, duties and powers of the Chairperson shall be as follows:-

(a) To convene meetings of the Board,
(b) To lead the Board at national and international levels on matters relating to health insurance as required,
(c) To evaluate the performance of the Executive Director,
(d) To submit the annual report of the Board to the Prime Minister through the Ministry,
(e) To perform other functions as prescribed. 20. Executive Director: (1) There shall be one Executive Director as a full-time officer to work as the administrative chief of the Board.

(2) The term of office of the Executive Director shall be four years, and he/she may be reappointed for a maximum of one term.

(3) The remuneration, terms of service and facilities of the Executive Director shall be as prescribed. 21. Qualification for Appointment to the Position of Executive Director: To be appointed to the position of Executive Director, the following qualifications must be met:-

(a) Having obtained at least a Master's degree in economics, management, law, medical science, public health or health economics from a recognized educational institution and having gained at least ten years of experience in the relevant field,
Amended by the Act to Amend Some Nepal Acts Relating to Good Governance Promotion and Public Service Delivery, 2081.(b) Fulfilling qualifications pursuant to clauses (a) and (c) of Section 18,
(c) Not exceeding sixty-five years of age.
Health Insurance Act, 2017

22. Recommendation Committee: (1) There shall be a Recommendation Committee as follows to recommend for appointment to the position of Executive Director:-

(a) Chairperson of the Public Service Commission or a member of the Commission designated by him/her - Coordinator
(b) One person nominated by the Ministry from among persons who have obtained a Master's degree in economics, management, finance, law, health economics or insurance and have at least seven years of experience in the relevant field - Member
(c) Secretary, Ministry - Member-Secretary

(2) The Committee pursuant to sub-section (1) shall recommend the names of three persons, who have fulfilled the qualifications pursuant to Section 21 for appointment to the position of Executive Director, based on open competition as prescribed.

(3) The Government of Nepal shall appoint one of the persons recommended pursuant to sub-section (2) to the position of Executive Director.

(4) The procedures of the Committee pursuant to sub-section (1) shall be as determined by the Committee itself. 23. Performance Agreement to be Made: The Board shall make a performance agreement with the Executive Director as prescribed. 24. Functions, Duties and Powers of Executive Director: The functions, duties and powers of the Executive Director shall be as follows:-

(a) To prepare policies, strategies, plans, budgets and programs relating to health insurance and submit them to the Board,
(b) To perform or cause to be performed functions relating to training, study, research, supervision, monitoring and evaluation concerning health insurance,
(c) To perform or cause to be performed functions relating to information, communication and coordination of the health insurance program,
(d) To prepare provisions relating to enrollment in the health insurance program, determination of service levels, conditions of contracts to be made with service providers, and payment methods, and submit them to the Board,
(e) To maintain accounts of the income and expenditure of the Board, implement internal control systems, and conduct or cause to be conducted audits,
(f) To implement or cause to be implemented the decisions of the Board,
(g) To prepare the annual report and submit it to the Board,
(h) To perform other functions as prescribed. 25.
Health Insurance Act, 2017

25. Position to Become Vacant: (1) The position of Chairperson, Member and Executive Director shall be deemed vacant in the following circumstances:-

(a) If the Chairperson or Executive Director submits a written resignation to the Government of Nepal, and the Member submits a written resignation to the Chairperson,
(b) If absent from three consecutive meetings of the Board without informing the Board,
(c) If convicted by a court for an offense mentioned in clause (c) of Section 18,
(d) If their term of office expires,
(e) If removed from office pursuant to sub-section (2),
(f) If death occurs.

(2) Notwithstanding anything contained in sub-section (3) of Section 13 and sub-section (2) of Section 20, if the Chairperson, Member or Executive Director does any act contrary to the interests of the Board or fails to fulfill their official responsibilities, the Government of Nepal in the case of the Chairperson and Executive Director, and the Ministry in the case of a nominated Member, may remove them from office at any time before the expiry of their term.

(3) Before removing the Chairperson, Member or Executive Director from office pursuant to sub-section (2), a reasonable opportunity shall be given to present a defense against the charges leveled against them.

(4) If, during the pendency of charges against the Chairperson, Member or Executive Director pursuant to sub-section (3) while remaining in office, there appears a reasonable basis for believing that the person may destroy evidence against the charges or cause any loss or damage to the Board, the appointing or nominating authority may immediately suspend the person from office.

(5) The period of suspension pursuant to sub-section (4) shall not exceed three months. Added by the Act to Amend Some Nepal Acts Relating to Good Governance Promotion and Public Service Delivery, 2081.(6) If the position of Executive Director becomes vacant for any reason, until an Executive Director is appointed pursuant to sub-section (3) of Section 22, the Ministry may depute an employee of at least the eleventh level of the Nepal Health Service currently serving in the Ministry or its subordinate bodies to work as the Executive Director. 26. Provisions Relating to Employees: (1) There shall be the required number of employees in the Board.

(2) The appointment, remuneration, terms of service and facilities of the employees in the Board pursuant to sub-section (1) shall be as prescribed.

(3) The Board may appoint experts for work requiring expertise that cannot be performed by its employees, and the qualification, remuneration, terms of service and facilities of such experts shall be as determined by the Board. Chapter-5
Fund and Accounts

27.
Health Insurance Act, 2017

Chapter-5
Fund and Accounts

27. Fund: (1) There shall be a Health Insurance Fund for the implementation of the health insurance program.

(2) The Fund pursuant to sub-section (1) shall contain the following amounts:-

(a) Grant amounts received from the Government of Nepal, Provincial Government and Local Government,
(b) Amounts received from contributors,
(c) Amounts received from domestic associations, institutions or persons,
(d) Amounts received from foreign governments, associations, institutions or persons,
(e) Amounts earned by the Board and received from other sources.

(3) Prior approval of the Ministry of Finance, Government of Nepal shall be obtained before receiving amounts pursuant to clause (d) of sub-section (2).

(4) The amount of the Fund shall be deposited by opening an account in a class "A" commercial bank within Nepal specified by the Board.

(5) The operation of the Fund account shall be by the joint signature of the Executive Director and the Chief of Accounts. 28. Use of Fund: (1) All expenditures made on behalf of the Board shall be borne by the Fund.

(2) Notwithstanding anything contained in sub-section (1), expenditure for the promotion of health insurance and administrative expenses shall not exceed twelve percent of the total budget of the Fund. 29. Accounts and Audit of Fund: (1) Accounts of the income and expenditure of the Fund shall be maintained in accordance with prevailing law.

(2) The Board shall cause an internal audit of its income and expenditure to be conducted as prescribed.

(3) The Board shall cause a final audit to be conducted by the Auditor General within three months of the end of each fiscal year.

(4) The Ministry may, if it so desires, inspect or cause to be inspected the accounts and books of the Board at any time. 30. Amount Not to be Frozen: Notwithstanding anything contained in prevailing law, the amount in the Fund shall not be frozen. Chapter-6
Complaint, Penalty and Appeal

31. May File Complaint: (1) If a service provider fails to provide services to the insured, delays in providing services, or provides services of a quality lower than the prescribed service level, the insured may file a complaint against such service provider before the Board or any body designated by the Board within ninety days from the date of such act.

(2) Other provisions relating to filing complaints shall be as prescribed. 32.
Health Insurance Act, 2017

32. Penalty: (1) If a complaint pursuant to Section 31 is found reasonable upon inquiry, the Board shall impose a fine of fifteen thousand to twenty-five thousand rupees on such service provider and also order payment of an amount equivalent to the fine to the insured as compensation.

(2) If any insured acts contrary to Section 8 and causes loss or damage to the Board, the Board may impose a fine on such insured equivalent to the amount of loss caused by them.

(3) If any service provider does any other act contrary to this Act or the rules made under this Act, the Board may impose a fine of up to five hundred thousand rupees on such service provider. 33. May File Appeal: A party not satisfied with the decision made by the Board under Section 32 may file an appeal in the concerned High Court within thirty-five days from the date of receipt of notice of such decision. Chapter-7
Miscellaneous

34. Dispute Resolution: (1) If any dispute arises between the Board, the insured or the service provider in the course of implementing the provisions of this Act or the rules made under this Act, such dispute shall be resolved through mutual understanding.

(2) If the dispute is not resolved pursuant to sub-section (1), such dispute shall be resolved by the Dispute Resolution Committee as prescribed.

(3) A party not satisfied with the decision of dispute resolution made by the Committee pursuant to sub-section (2) may file an appeal in the concerned District Court within thirty-five days from the date of receipt of notice of such decision. 35. Meeting Allowance: Members shall receive a meeting allowance as prescribed for participating in Board meetings. 36. Contact with Government of Nepal: The Board shall contact the Government of Nepal through the Ministry. 37. May Give Direction: The Ministry may give necessary directions to the Board in the context of implementing this Act, and it shall be the duty of the Board to follow such directions. 38. To be According to Prevailing Law: Matters written in this Act shall be according to this Act, and matters not written in this Act shall be according to prevailing law. 39. May Make Rules: The Government of Nepal may make necessary rules for implementing this Act. 40. May Make Regulations: The Board may make necessary regulations, subject to this Act and the rules made under this Act. 41. May Make Directives and Procedures: The Board may make necessary directives and procedures, subject to this Act and the rules and regulations made under this Act. 42.
Special Court Act, 2002

Special Court Act, 2059 (2002)

Date of Royal Seal and Publication
2059.03.05 (2002)
Date of Certification and Publication
2064.05.19 (2007)

Amending Acts

1. Special Court (First Amendment) Act, 2064 (2007) 2064.05.19
2. Republic Strengthening and Some Nepal Laws Amendment Act, 2066 (2009) 2066.01.07
3. Some Nepal Acts Amendment Act, 2082 (2025) 2082.04.14

Act No. 2 of the year 2059 (2002)

An Act Made to Provide for the Constitution, Jurisdiction and Procedure of the Special Court

Preamble: Whereas, it is expedient to make timely legal provisions relating to the constitution, jurisdiction and procedure of a Special Court for conducting proceedings and disposal of certain types of cases in a speedy, simple and effective manner;

Be it enacted by Parliament in the first year of the reign of His Majesty King Gyanendra Bir Bikram Shah Dev. Chapter-1
Preliminary

1. Short Title and Commencement: (1) This Act may be called the "Special Court Act, 2059 (2002)".

(2) This Act shall come into force immediately. 2. Definitions: Unless the subject or context otherwise requires, in this Act,-

(a) "Special Court" means the Special Court constituted pursuant to Section 3.

(b) "Certain types of cases" means certain types of cases specified by the Government of Nepal by publishing a notification in the Nepal Gazette for the purpose of sub-section (1) of Section 3.

(c) "Chairperson" means the Chairperson of the Special Court.

(d) "Member" means a member of the Special Court, and this term shall also include the Chairperson. Chapter-2
Constitution of the Special Court

3. Constitution of Special Court: (1) The Government of Nepal may, on the recommendation of the Judicial Council, publish a notification in the Nepal Gazette and constitute a Special Court with amended by the First Amendment.the required number of members for conducting proceedings and disposal of certain types of cases in a speedy, simple and effective manner. Added by the First Amendment.(1A) Where a Special Court with more than three members is constituted pursuant to sub-section (1), Benches shall be formed with three members in each Bench.

(2) The Government of Nepal shall, on the recommendation of the Judicial Council, appoint the Chairperson and members of the Special Court constituted pursuant to sub-section (1) from among the judges of the Court of Appeal.

(3) While constituting the Special Court pursuant to sub-section (1), the Government of Nepal shall also specify the territorial jurisdiction and seat of such Special Court.

(4) The Government of Nepal may, by publishing a notification in the Nepal Gazette, specify a seat other than the place where the seat of the Special Court is located, for the period specified in that notification, by constituting a Bench there. 4.
Special Court Act, 2002

4. Power to Add or Subtract Cases: The Government of Nepal may, by publishing a notification in the Nepal Gazette, add or subtract from the cases assigned to the Special Court constituted under Section 3. 5. Facilities of Members: The remuneration and other facilities of the Chairperson and members of the Special Court shall, in addition to what they already receive, be as prescribed by the Government of Nepal. Chapter-3
Jurisdiction of the Special Court and its Exercise

6. Jurisdiction and Exercise of the Special Court: (1) Initial proceedings and disposal of certain types of cases shall be conducted by the Special Court. Amended by the First Amendment.(2) The jurisdiction of the Special Court shall be exercised collectively by all members present in the Bench. Provided that a Bench composed of one member may conduct proceedings of a case other than proceedings relating to interim bail, and a Bench composed of two members may conduct proceedings relating to interim bail and disposal of the case.

(3) In a Bench where three members are present, if there is unanimity among all three members or a majority of two members, that opinion shall be deemed to be the decision of the Court.

(4) If unanimity is not reached in a Bench where two members are present, in the case of proceedings, if the Bench includes the Chairperson, the matter shall be decided according to the opinion of the Chairperson, and if the Bench does not include the Chairperson, according to the opinion of the senior member; in the case of a judgment or final order of the case, it shall be submitted to the member who was previously absent, and the opinion supported by that member shall be deemed to be the decision of the Court.

(5) If a majority cannot be reached even after submission to the member who was previously absent pursuant to sub-section (4), the matter shall be submitted to the Supreme Court for decision.

(6) The Supreme Court shall grant priority to and hear the case submitted pursuant to sub-section (5).

(7) The hearing of a case submitted pursuant to sub-section (5) shall be conducted by a single judge Bench of the Supreme Court, and the decision made by that Bench shall be deemed to be the decision of the Special Court. Added by the First Amendment.(8) If it is necessary to form more than one Bench in the Special Court, the Chairperson shall form the Benches and assign cases. Added by the First Amendment.(9) In the absence of the Chairperson, the power of the Chairperson pursuant to sub-section (8) shall be exercised by the senior member among those present.
Special Court Act, 2002

Added by the First Amendment.(9) In the absence of the Chairperson, the power of the Chairperson pursuant to sub-section (8) shall be exercised by the senior member among those present. Chapter-4
Powers and Procedure of the Special Court

7. Powers of the Special Court: The powers of the Special Court shall be as follows:-

(a) To examine, in addition to the witnesses of the plaintiff and defendant, any other persons or evidence deemed necessary in relation to the case,

(b) To issue a warrant and arrest a defendant or witness who fails to appear on summons, to record their statement or deposition,

(c) To conduct the trial by keeping any party to the case on recognizance, or to summon them when necessary, or to conduct the trial without keeping them on recognizance for appearance at a specified time,

(d) If it does not appear necessary, based on the evidence immediately available, to keep an accused in custody for trial, to demand a deposit or surety from them taking into account the amount of loss or damage caused by them or the amount unlawfully taken, and the possible imprisonment or fine that may be imposed on them,

(e) If there is sufficient and reasonable cause to keep an accused in custody for trial based on the evidence immediately available, to keep them in custody for trial, notwithstanding anything contained in the prevailing law,

(f) The Special Court may, to the extent of the forfeiture, confirm the deposit or surety taken by the investigating body during the course of investigation. 8. Power to Freeze Property and Passport: Based on the gravity of the charge against an accused, the status of the accused, the extent and nature of the offense, the Special Court may order the relevant authority to freeze any property of such accused, not to issue a passport to such accused, or to freeze such passport if already issued. 9.
Special Court Act, 2002

10. Procedure Regarding Service of Summons: (1) While sending a summons in the name of a defendant in a case pending in the Special Court, a notice may be issued fixing a period of up to thirty days for those residing abroad, and up to fifteen days for those residing within Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066 (2009)., excluding the time for travel.

(2) If a notice is to be served in the name of a defendant residing abroad pursuant to sub-section (1), if such defendant has any office or representative in Nepal, the notice shall be served in the name of such office or representative, and the notice so served shall be deemed to have been duly served.

(3) If there is no office or representative as per sub-section (2), if there is a principal place of business of such defendant, or a permanent residence address, or any address given by them for correspondence at the time of transaction, the notice shall be served at such address via telex, telefax, or any other means of telecommunication capable of creating a record, or by registered post, and the notice so served shall be deemed to have been duly served.

(4) Notwithstanding anything contained in sub-section (2) or (3), if a separate provision is made regarding the service of notice in the name of a defendant residing abroad in any treaty to which Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066 (2009). or the Government of Nepal is a party, nothing in this section shall be deemed to prevent the service of notice in accordance with that provision.

(5) While sending a summons in the name of a witness in a case pending before the Special Court, a notice may be issued fixing a period of up to seven days, excluding the time for travel.

(6) A summons issued pursuant to this section may be served by an employee of the Special Court or through the District Court or any other nearby government office.
Special Court Act, 2002

It shall be the duty of the officer-in-charge (Shrestedar) of the concerned District Court or the head of such office to have the summons received from the Special Court served promptly.

(7) An employee going to serve a summons issued by the Special Court shall complete the service within two days, excluding travel time, and if it appears that the service of summons was delayed without any reasonable cause, the Special Court may impose a fine of up to five hundred rupees on such employee.

(8) If any person, upon knowing that a summons has been issued in their name from the Special Court, submits an application to the Special Court or to the Court or office where the summons was sent for service, requesting to receive the summons issued in their name, such summons may be served on that person. No fee shall be charged for submitting such an application.

(9) If, while attempting to serve a summons in the name of any person by adopting the procedure under this section, a report is received that the address of such person could not be traced or the summons could not be delivered for any other reason, a public notice shall be published at least twice in a national-level newspaper (in an English daily for foreigners) mentioning a brief description of the case filed in the Special Court, giving such person a period of up to thirty days to appear, and upon such publication of notice, the summons shall be deemed to have been duly served on that person.

(10) Except as provided in this section, other provisions relating to the service of summons shall be according to the prevailing law. 11. Provision for Adjournment of Summons Date: If a petition is filed in a case pending in the Special Court, or in an appeal against the decision of that Court, for adjournment of the summons date stating the cause and basis of circumstances beyond control, and if the content thereof appears reasonable, the summons date may be adjourned once for a maximum period of fifteen days. 12. Other Powers and Procedure: While conducting proceedings and disposal of a case, the Special Court shall, to the extent provided in this Act, act according to this Act, and for matters other than that, the Special Court may exercise the powers and procedures equivalent to those of a District Court under the prevailing law. Chapter-5

Miscellaneous

13. Taking Oath: The Chairperson and members shall, before assuming their office, take an oath before the Chief Justice of the Supreme Court in the format as per the Schedule. 14.
Special Court Act, 2002

Chapter-5

Miscellaneous

13. Taking Oath: The Chairperson and members shall, before assuming their office, take an oath before the Chief Justice of the Supreme Court in the format as per the Schedule. 14. Contempt: The Special Court may initiate proceedings for contempt of itself, and if found guilty of contempt, it may impose a fine of up to five thousand rupees or imprisonment for up to six months or both. Provided that if the accused tenders an apology to the satisfaction of the Special Court, the Special Court may forgive them, or if a sentence has already been imposed, it may remit or reduce that sentence, or stay the sentence for up to six months subject to conditions specified by the Special Court, and order that the sentence not be executed if such conditions are fulfilled. 15. Obligation to Send Case Records or Documents or Replies Requested by the Special Court: If the Special Court orders any office to submit or send any case record, document, or any other thing required as evidence in a case, or requests clarification or a reply on any matter, that office must comply with such order within a reasonable time. If the proceedings or disposal of the case are hindered or any party is subjected to undue harassment or adverse effect due to the failure of any office to comply with such order, the Special Court may impose a fine of up to five hundred rupees on the head of the concerned office or employee for each instance. Provided that if, after such order of fine, the head of the concerned office or employee submits a petition stating that the fine should not be imposed because of the reason for being unable to comply with the Court's order, and if the reason appears satisfactory, the Special Court may cancel such order of fine. 16. Period for Disposal of Case: (1) The Special Court shall, generally, dispose of the case within six months from the date of filing of the case.

(2) The Supreme Court shall, generally, dispose of an appeal against the decision of the Special Court with priority within three months from the date of receipt of the case file. 17. Appeal: A party dissatisfied with a judgment or final order of the Special Court may appeal to the Supreme Court within thirty-five days from the date of such judgment or final order. 18. Execution of Judgment: A judgment or final order made by the Special Court shall be executed by the body specified in the judgment or final order as the executing body, and if not so specified, by the concerned District Court. 19.
Special Court Act, 2002

18. Execution of Judgment: A judgment or final order made by the Special Court shall be executed by the body specified in the judgment or final order as the executing body, and if not so specified, by the concerned District Court. 19. To be Tabled in Parliament: The Government of Nepal shall cause the notifications published under this Act to be tabled in Amended by the Some Nepal Acts Amendment Act, 2062 (2005).the Federal Parliament. 20. Dissolution of Special Court: (1) The Government of Nepal may, by publishing a notification in the Nepal Gazette, dissolve the Special Court.

(2) If the Special Court is dissolved pursuant to sub-section (1), the cases or complaints pending in the Special Court at the time of dissolution shall stand transferred to the Court of Appeal having the concerned territorial jurisdiction. 21. Provision of Staff: (1) The staff required for the Special Court shall be provided by the Government of Nepal.

(2) An officer designated by the Government of Nepal by publishing a notification in the Nepal Gazette shall act as the departmental head or administrative head of the Special Court. 22. Contact with Government of Nepal: The Special Court shall, while contacting the Government of Nepal, do so through the Ministry of Law, Justice and Parliamentary Affairs. 23. Power to Make Rules: The Government of Nepal may make necessary rules for the implementation of the objectives of this Act. 24. Repeal and Saving: (1) The Special Court Act, 2031 (1974) is hereby repealed.

(2) All acts and proceedings done under the Special Court Act, 2031 (1974) shall be deemed to have been done under this Act. 25. Transfer of Cases: Upon the constitution of the Special Court under this Act, the cases pending in the Special Court constituted under the Special Court Act, 2031 (1974) at that time shall stand transferred to the Special Court under this Act. 26. Adaptation: The words "Special Court Act, 2031 (1974)" used in the prevailing law are hereby adapted and replaced by the words "Special Court Act, 2059 (2002)". Schedule

(Relating to Section 13)

Oath

I, , do sincerely promise / swear in the name of God that I, remaining fully loyal to the Nepali people, the prevailing Constitution and other laws, shall faithfully discharge the responsibilities of the office of that I have assumed, without acting contrary to the integrity and dignity of the judiciary, and without being influenced by fear, favor, partiality, malice or greed, and I shall not disclose any matter that comes to my knowledge in the course of performing my duties, except when required to comply with the prevailing law, whether I remain in office or not. Date: Signature
Nepal Airlines Corporation Act, 1963

Nepal Airlines Corporation Act, 2019

Date of Royal Seal and Publication

2019.12.30

Amending Acts

1. Royal Nepal Airlines Corporation (Amendment) Act, 2020 2020.11.16
2. Royal Nepal Airlines Corporation (Second Amendment) Act, 2026 2026.5.19
3. Royal Nepal Airlines Corporation (Third Amendment) Act, 2034 2034.9.18
4. Administration of Justice Act, 2048 2048.2.16

Certification and Publication Dates

5. Republic Strengthening and Some Nepal Laws Amendment Act, 2066 2066.10.07
6. Some Nepal Acts Amendment Act, 2072 2072.11.13

Act No. 45 of the year 2019



An Act Made to Amend and Consolidate the Nepal Airlines Corporation Act

Preamble: Whereas it is expedient to amend and consolidate the Royal Nepal Airlines Corporation Act, 2018, for maintaining the convenience of the general public,

This Act is made by His Majesty King Mahendra Bir Bikram Shah Dev under Article 93 of the Constitution of Nepal. Chapter-1

Preliminary

1. Short Title, Extent, and Commencement: (1) The name of this Act is "Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. Nepal Airlines Corporation Act, 2019".

(2) This Act shall apply throughout Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. and, wherever located, to the Corporation established under this Act, its branches, the work carried out by it, and the persons working therein.

(3) This Act shall come into force immediately. 2. Definitions: Unless the subject or context otherwise requires, in this Act, -

(a) "Aircraft" means any machine that can derive support in the atmosphere from the reactions of the air, and this term also includes powered or unpowered balloons, airplanes, kites, gliders, and other similar flying machines.

(b) "Air Transport Service" means a service for the carriage by air, by one or more flights, of persons, mail, or any other living being, object, or thing for hire.

(c) "Co-operator in relation to the Corporation" means any person who has entered into an agreement with the Corporation under clause (j) of sub-section (2) of Section 13, or any auxiliary body of the Corporation.

(d) "Corporation" means the Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. Nepal Airlines Corporation established and constituted under this Act. Added by the Third Amendment. (d1) "Committee" means the Board of Directors of the Corporation. Added by the Third Amendment. (d2) "Chairperson" means the Chairperson of the Committee. Amended by the Third Amendment. (e) "Director" means a member of the Committee.

(f) "Managing Director" means the Managing Director appointed under this Act.
Nepal Airlines Corporation Act, 1963

Added by the Third Amendment. (d2) "Chairperson" means the Chairperson of the Committee. Amended by the Third Amendment. (e) "Director" means a member of the Committee.

(f) "Managing Director" means the Managing Director appointed under this Act. Amended by the Third Amendment. (g) "Scheduled Air Transport Service" means an air transport service operated regularly by the Corporation between any specified places according to a published time table, so as to be available for use by the general public.

(gh) Deleted by the Third Amendment. Chapter-2

Establishment, Capital, and Management

3. Establishment of the Corporation: (1) Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066. A Corporation by the name of Nepal Airlines Corporation shall be established.

(2) The Corporation shall be an incorporated and autonomous body with perpetual succession. It shall have a separate seal for all its work. Subject to this Act, the Corporation may acquire, hold, possess, and transfer movable and immovable property. The Corporation may sue and be sued in its own name.

(3) The head office of the Corporation shall be at Kathmandu or at any place specified by the Government of Nepal, and the Corporation may establish its branches within or outside Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066.. Amended by the Third Amendment.4. Committee and Procedure of Directors: (1) For the management of the Corporation's affairs, the Government of Nepal shall constitute a Board of Directors consisting of a maximum of seven members, including the Managing Director if one is appointed. If the Government of Nepal deems necessary, it may also appoint as Directors non-governmental persons renowned in commerce, finance, and accountancy or having experience in the field of aviation and tourism promotion.

(2) The term of office of Directors other than the Managing Director shall be four years, and a Director whose term has expired shall be eligible for reappointment. Provided that, a non-governmental person may generally be reappointed for only one additional term.

(3) Notwithstanding anything contained in sub-section (2), the Government of Nepal may, if it wishes, remove any Director even before the expiry of his/her term.

(4) The Government of Nepal may appoint from among the Directors the Chairperson and Vice-Chairperson of the Committee. The term of office of the Chairperson and Vice-Chairperson shall be at the pleasure of the Government of Nepal.

(5) If the Government of Nepal so desires, it may assign the duties, etc., of the Managing General Manager under this Act to the Chairperson, Vice-Chairperson, or any Director and appoint him/her as the Executive Chairperson, Executive Vice-Chairperson, or Executive Director.
Nepal Airlines Corporation Act, 1963

The salary, allowances, and other terms of service of the Executive Chairperson, Executive Vice-Chairperson, or Executive Director so appointed shall be as determined by the Government of Nepal.

(6) The Secretary of the Committee shall certify the decisions of the Committee.

(7) Six months before the expiry of the term under sub-section (2), the concerned Ministry shall propose to the Government of Nepal the names of Directors to be placed on the Committee. Amended by the Second Amendment.5. Authorized Capital of the Corporation: The authorized capital of the Corporation shall be five crore rupees, and on the recommendation of the Committee, the Government of Nepal may, from time to time, increase it by publishing a notice in the Nepal Gazette. Amended by the Third Amendment.6. Appointment of Managing Director: (1) If an Executive Chairperson, Executive Vice-Chairperson, or Executive Director of the Corporation has not been appointed, the Government of Nepal shall appoint a Managing Director. His/her salary, allowances, and other terms of service shall be as determined by the Government of Nepal.

(2) The duties, functions, and powers of the Managing Director shall be as determined by the Committee.

(3) The term of office of the Managing Director shall be four years, and the Government of Nepal may, if it wishes, extend his/her term by up to two years or reappoint him/her for another term. 7. Management: (1) The Government of Nepal may, after consulting the Corporation and keeping national interest in view, give such directions to the Corporation as it may deem necessary from time to time. It shall be the duty of the Corporation to comply with every such direction.

(2) The Committee shall oversee, direct, and manage all the work and activities of the Corporation. Except for matters expressly stated in this Act or the rules or regulations made under this Act as requiring approval from the Government of Nepal, the Committee shall exercise all powers and perform all duties vested in the Corporation. Provided that, the Committee may, subject to such conditions as it thinks necessary and appropriate, delegate to the Managing Director, or to a sub-committee, or to other officers of the Corporation, whether directly or through subordinates, the performance and exercise of such of its duties and powers as are specified in this Act or the rules or regulations made thereunder. Added by the Third Amendment. (3) The Corporation may, by making regulations under this Act, make provisions for the duties, functions, and powers of Directors.
Nepal Airlines Corporation Act, 1963

Added by the Third Amendment. (3) The Corporation may, by making regulations under this Act, make provisions for the duties, functions, and powers of Directors. Added by the Third Amendment. (4) Where the duties, functions, and powers of Directors are provided for under sub-section (3), the Chairperson shall evaluate the work and activities of the Directors and submit a report to the Government of Nepal each year. On the basis of such evaluation report, the Government of Nepal may increase or decrease the term of any Director. 8. Disqualification of Managing Director and Directors: The following persons shall not be eligible to become Managing Director or Director: -

(a) Any employee or advisor of the Corporation other than the Managing Director, or

Amended by the Third Amendment. (b) A person who has taken a contract or lease from the Corporation, or

(c) An insolvent person unable to pay debts, or

(d) A person of unsound mind or mentally unbalanced, or

(e) A person who has been sentenced to imprisonment for a criminal offense involving moral turpitude. 9. Circumstances in which Managing Director and Directors may be Removed: The Government of Nepal may remove the Managing Director or any Director from office in the following circumstances: -

(a) If he/she incurs any disqualification mentioned in Section 8, or

(b) If, without the permission of the Committee, he/she is absent from meetings of the Committee more than three consecutive times and the reason for such absence is not considered reasonable by the Government of Nepal, or

(c) If he/she violates Section 21 or is punished for an offense punishable under Section 25, or

Amended by the Second Amendment. (d) If he/she is proven to have violated Section 22. 10. Resignation of Managing Director or Director and Filling of Vacancies occurring in the Interim: (1) The Managing Director or any Director may resign from office by giving written notice to the Government of Nepal, and upon acceptance of the resignation, he/she shall be deemed to have vacated the office.

(2) If the office of the Managing Director or any Director becomes vacant before the expiry of the term for any reason, the vacancy shall be filled by nomination or by another appointment. However, the person so appointed shall hold office only for the remainder of the term of the predecessor.

(3) No act or proceeding of the Committee shall be invalid merely by reason of any vacancy in the Committee or any defect in its constitution. Amended by the Third Amendment.11.
Nepal Airlines Corporation Act, 1963

However, the person so appointed shall hold office only for the remainder of the term of the predecessor.

(3) No act or proceeding of the Committee shall be invalid merely by reason of any vacancy in the Committee or any defect in its constitution. Amended by the Third Amendment.11. Committee Meetings: (1) Meetings of the Committee shall be held at such place and time as determined by the Chairperson of the Committee.

(2) If more than half of the total number of Directors for the time being are present, the meeting shall be deemed to have a quorum.

(3) The meeting shall be presided over by the Chairperson. In his/her absence, the Vice-Chairperson, if any, shall preside, and in the absence of the Vice-Chairperson, a Director chosen by the Directors present shall preside.

(4) Decisions in Committee meetings shall be made by a majority. In the case of a tie, the person presiding shall cast a casting vote.

(5) If at least three Directors request a meeting of the Committee, the Chairperson shall call a meeting at any time, notwithstanding anything contained in sub-section (1). 12. Temporary Appointment: If the Managing Director or a Director is unable to perform the work of the Corporation for a period due to illness, leave, or other reasons, the Government of Nepal may Added by the Third Amendment. make a temporary appointment of any person to that position until he/she is able to attend. Chapter-3

Duties, Functions, and Powers of the Corporation

13.
Nepal Airlines Corporation Act, 1963

14. Acts and Proceedings that the Corporation may Carry Out: (1) The Corporation may do all things reasonable and necessary for the proper execution of its work.

(2) Without prejudice to the generality of the powers conferred by sub-section (1), the Corporation may carry out the following acts and proceedings: -

(a) To borrow from others by mortgaging the property of the Corporation,

(b) To lease, sell, or otherwise dispose of any property of the Corporation,

(c) To transact on behalf of the Government of Nepal, in accordance with the orders of the Government of Nepal, in respect of government funds deposited in the Corporation,

(d) Amended by the Third Amendment. To obtain recognition for the Corporation from foreign countries and to enhance public confidence in the Corporation,

(e) To do all other things incidental to the performance of the various types of work mentioned in this Act. 15. Monopoly to Operate Scheduled Air Transport Service: (1) From the date specified by the Government of Nepal by notification in the Nepal Gazette, no person other than the Corporation or its co-operator shall operate any scheduled air transport service coming within Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066 or going outside Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066 or flying from one place to another in Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066.
Nepal Airlines Corporation Act, 1963

Provided that nothing in this section shall limit the right of any person: -

(a) To operate an air transport service, with the permission of the Government of Nepal for a specified period, to meet such needs if the Corporation is not capable of operating such service as the Government of Nepal deems necessary to various places within or outside Nepal Deleted by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066, or under an agreement between the Government of Nepal and the government of any foreign country, or to continue operating such air transport service under an agreement already made with the Government of Nepal before the commencement of this Act for the duration of that agreement, or

(b) To fly an aircraft carrying passengers primarily for the purpose of giving instruction related to the work and duties of aircraft pilots or for the inspection of aircraft by an aircraft controller, or

(c) To carry passengers and goods for providing relief in the event of any natural disaster, or

(d) To make a flight solely for pleasure, taking off from and landing at the same aerodrome or place without intermediate landing, or to conduct aerial surveys, firefighting, crop dusting, locust control, or for other aerial work of a similar nature, carrying passengers and goods only for that purpose.

(2) Any person operating a scheduled air transport service in contravention of this section shall be liable, for each offense, to a fine of up to Nepalese Rupees 1,000 (one thousand) or imprisonment for up to one year, or both. Explanation: For the purposes of this section, each flight shall be deemed a separate offense.

(3) If, after the expiry of the term of the agreement referred to in the proviso to sub-section (1), an extension of the term is required, or if after the commencement of this Act it becomes necessary to allow any person, company, or foreign government to operate a new air transport service in any other manner, the Government of Nepal shall, after consulting the Corporation, decide on granting permission.

(4) The Corporation must obtain prior approval from the Government of Nepal to extend or carry out its work beyond the area approved by the Government of Nepal. Chapter-4

Fund, Accounts, and Audit

16. Fund of the Corporation: (1) The Corporation shall have a separate fund of its own. All income of the Corporation shall be credited to that fund, and all expenses shall be borne from that fund.