chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Muluki Civil Code, 2017

Creditor May Recover Debt: If a person's inheritance opens and he or she has creditors, such creditors may recover the debt and liability from the person receiving the inheritance. Provided that the person receiving the inheritance shall not be obliged to pay debt and liability exceeding the deceased's property. 248. Inheritance Property to Belong to Local Level: (1) If a person's inheritance opens and he or she has no heir, or even if there is an heir, if such heir does not accept the inheritance, after deducting the expenses incurred for the final rites and mourning period of the deceased, and if there are creditors, after paying their amounts, if any property remains, such property shall belong to the concerned local level.

(2) If a person dies and there is no heir and there is property, the person performing the final rites or keeping the accounts shall immediately give notice of that fact to the concerned local level.

(3) Upon receipt of notice under sub-section (2), the local level shall, keeping at least two local persons as witnesses, prepare an inventory of the deceased's property and send one copy thereof with the report (muchulka) to the concerned district-level administrative office.

(4) Upon receipt of the inventory with the report under sub-section (3), if the address of the deceased is known, such office shall send notice according to law to the heir of the deceased to come and take the deceased's property within three months.

(5) If no heir accepts the property under sub-section (1), or if the heir of the deceased does not appear within the period under sub-section (4), or if the address of such heir is not found, such office shall publish a notice in a national-level newspaper stating that any heir of the deceased should come to claim the deceased's property within thirty-five days.

(6) If an heir of the deceased appears within the period under sub-section (5), after deducting the expenses incurred for the final rites of the deceased or giving such expenses to the person performing the final rites, and taking ten percent of such property, the remaining property shall be returned to the concerned heir.

(7) If no heir of the deceased appears within the period under sub-section (5), or if his or her address is not found, after giving the expenses incurred for the final rites of the deceased to the person performing the final rites, the remaining property shall belong to the concerned local level.

(8) The property received by the local level under sub-section (1) or (7) shall be entrusted to the local level by the concerned heir or the office under sub-section (3) in accordance with law.

(9) The local level shall use the property received under this section for public benefit.
Muluki Civil Code, 2017

249. Inheritance of Property of a Foreigner Dying within Nepal: (1) If a foreigner dies within Nepal and has no heir within Nepal, but there is property, the person performing the final rites or keeping the accounts shall immediately give notice of that fact to the nearest local level.

(2) Upon receipt of notice under sub-section (1), the local level shall, keeping at least two local persons as witnesses, prepare an inventory of the deceased's property and send one copy thereof with the report to the concerned district-level administrative office.

(3) Upon receipt of the inventory with the report under sub-section (2), such office shall immediately inform the Federal Ministry of Home Affairs.

(4) Upon receipt of the notice under sub-section (3), the Federal Ministry of Home Affairs shall, through the diplomatic channel of the concerned country, send notice according to law to the heir of the deceased to come and take the deceased's property within four months.

(5) If a citizen of a country with which Nepal has no diplomatic relations dies and the details under sub-section (3) are received, the Federal Ministry of Home Affairs shall, within six months, publish a notice in a national-level daily English-language newspaper for taking such property, and such notice shall also be placed on the website of the Federal Ministry of Home Affairs.

(6) If an heir of the deceased appears within the period under sub-section (4) or (5), after deducting the expenses incurred for the final rites of the deceased or giving such expenses to the person performing the final rites, and collecting a fee of ten percent of the value of such property, the remaining property shall be returned to the concerned heir.

(7) If no heir of the deceased appears within the period under sub-section (4) or (5), or if his or her address is not found, after giving the expenses incurred for the final rites of the deceased to the person performing the final rites, the remaining property shall belong to the local level.

(8) The property received by the local level under this section shall be used only for public benefit. 250. Limitation Period: In this Chapter, where a limitation period is written elsewhere, a complaint may be filed within that limitation period; otherwise, within three years from the date the inheritance opened. Part-4
Property Law

Chapter-1
General Provisions Relating to Property

251. Considered as Property: Any cash, goods, or action that can be consumed, purchased, sold, or otherwise have its right transferred or transacted, or from which any benefit can be obtained, shall be considered as property. Explanation: Unless otherwise provided in this Code, "goods" means physical property that can be bought and sold. 252.
Muluki Civil Code, 2017

Explanation: Unless otherwise provided in this Code, "goods" means physical property that can be bought and sold. 252. Property Considered as Movable or Immovable: Whether existing in a physical or non-physical, tangible or intangible state, property shall be considered as movable or immovable. 253. Considered as Immovable Property: (1) The following property shall be considered as immovable:-

(a) House or land or a structure attached to it,

(b) Any object permanently affixed to a house or land,

(c) Mines, stones, or mineral substances attached to land,

(d) Water in its natural form, surface water and underground water,

(e) Houses or other structures permanently built to float on rivers, lakes, ponds,

(f) Trees, plants, or fruit plants standing on land, or the fruits or flowers grown on such trees, plants, or fruit plants, crops grown on land,

(g) Any movable property attached to immovable property.

(2) Notwithstanding anything written in sub-section (1), if any structure, object, or part thereof attached or affixed to immovable property becomes or is separated from the immovable property in any way, the structure, object, or part so separated or caused to be separated shall be considered movable property. 254. Considered as Movable Property: The following property shall be considered as movable:-

(a) Cash or objects transacted as cash, or foreign currency,

(b) Gold, silver, jewellery, gems, ornaments made of gold and silver, or precious stones,

(c) Other objects, other than those in clause (a) or (b), that can be transported from one place to another,

(d) Debentures, securities, promissory notes, bills of exchange, letters of credit, or other negotiable instruments, or the benefit derived from them,

(e) Intellectual property,

(f) Rights in mortgage,

(g) Business goodwill or franchise,

(h) Property other than immovable property. 255. Classification of Property on Basis of Ownership: The classification of property based on ownership and the nature of its use shall be as follows:-

(a) Private property,

(b) Joint family property,

(c) Joint property,

(d) Community property,

(e) Public property,

(f) Government property,

(g) Guthi (trust) property. 256.
Muluki Civil Code, 2017

255. Classification of Property on Basis of Ownership: The classification of property based on ownership and the nature of its use shall be as follows:-

(a) Private property,

(b) Joint family property,

(c) Joint property,

(d) Community property,

(e) Public property,

(f) Government property,

(g) Guthi (trust) property. 256. Considered as Private Property: (1) Any property in the name of a person, or property increased or augmented from it, shall be considered as that person's private property in the following circumstances:-

(a) Acquired through one's own knowledge, skill, or effort,

(b) Received as donation, gift, or inheritance,

(c) Received as lottery or prize,

(d) Received as remuneration, gratuity, pension, medical expenses, provident fund, insurance, or other social security,

(e) Received as intellectual property or royalty,

(f) When separated by mess according to law and living separately, or even when not separated by mess but living and eating with separate profit and loss, acquired in any manner,

(g) Property acquired by a woman before marriage, received, or received from her parental home at the time of marriage, or property increased or augmented from it,

(h) Movable or immovable property given to a woman by the consent of the husband and all coparceners from the husband's side by a deed granting her exclusive right, or property received from relatives or friends on the husband's side, and property increased or augmented from it,

(i) Property specified by law as being only the private property of a person.

(2) Any person may dispose of his or her private property as he or she wishes, subject to this Code. 257. Considered as Joint Family Property: (1) Subject to Section 256, any of the following property, even if in the name of any of the coparceners of the joint family, or property increased or augmented from it, shall be considered as joint family property:-

(a) Property received from ancestry,

(b) Other property in the name of a coparcener other than private property,

(c) Property acquired by a coparcener from joint family farming, industry, trade, business, or increased or augmented from it.

(2) Except where separated according to law, property earned by the husband or wife, or increased or augmented from it, shall be the joint family property of the husband and wife.

(3) Notwithstanding anything written elsewhere in this Chapter, for the purpose of partition between father-mother and sons-daughters, property acquired by the father and mother shall also be considered joint family property.

(4) The use, transfer of rights, and other arrangements of joint family property shall be in accordance with other chapters of this Code. 258.
Muluki Civil Code, 2017

258. Considered as Joint Property: (1) Property in the name of two or more persons, other than coparceners of a single joint family, or property increased or augmented from it, shall be considered as joint property.

(2) If there is a deed specifying the right or share of a person in the joint property, it shall be according to that; and if there is no mention in the deed, the persons holding such property shall be considered to have equal rights and shares.

(3) The use, management, transfer of rights, and other arrangements of joint property shall be in accordance with this Chapter and other

275. Limitation Period: A person affected by any act or action done under this Chapter may file a lawsuit within one year from the date on which he/she came to know of such act or action. Chapter-3

Provisions Relating to Enjoyment of Property

276. Not to Enjoy, Damage or Acquire the Property of Another: (1) No person shall enjoy the property of another person without his/her consent.

(2) No person shall damage the property of any person by blocking the path or exit of another person, by doing any work or construction on the boundary of his/her own land, or in any other manner whatsoever.

(3) No person shall acquire the property of another person without his/her consent. Provided that, the Government of Nepal may acquire the property of any person in accordance with law for the public interest.

(4) No person shall enter the house compound of any person without his/her consent, except in accordance with law. 277. Property to be Inviolable: (1) No person shall encroach upon, usurp, or in any manner cause obstruction or trespass to the property of another person.

(2) If any person, by doing any act pursuant to sub-section (1), takes possession of the property of another person, he/she shall be deemed to have caused obstruction or trespass to such property. 278. Protective Measures to be Adopted: When any person does any work on his/her own house or land, he/she must adopt protective measures ensuring that no harm, loss, or adverse effect is caused to the house, land, or neighbor of the adjacent owner in any manner. Provided that, except in cases where a neighbor is engaged in commercial business, ordinary gas, smell, smoke, or noise emanating from the use and enjoyment of one's own house or land shall not be deemed to cause harm, loss, or adverse effect to the house or land. 279.
Muluki Civil Code, 2017

Provided that, except in cases where a neighbor is engaged in commercial business, ordinary gas, smell, smoke, or noise emanating from the use and enjoyment of one's own house or land shall not be deemed to cause harm, loss, or adverse effect to the house or land. 279. Not to Build House on Another's Land without Consent: (1) No person shall build a house on the land of the owner without his/her written consent.

(2) If any person builds a house on the land of the owner without his/her written consent, the landowner may, if he/she so wishes, purchase such house at a price up to twenty-five percent less than its market value.

(3) If the landowner does not purchase such house pursuant to sub-section (2), the house owner may, with the consent of the owner, purchase the land on which such house is built by paying an additional price of up to twenty-five percent of the market value of such land.

(4) If both parties do not agree to the purchase and sale of the house or land pursuant to sub-section (2) or (3), the person who built the house shall, within three months from the date of building such house, demolish the house and take away his/her materials.

(5) If the house is not demolished within the period referred to in sub-section (4), such house shall vest in the landowner. 280. Land to be Left when Installing Windows: If any person or government body needs to build a house by installing windows or doors facing the land of the neighbor, the land shall be left in accordance with the standards prescribed by the concerned body. 281. Not to Drain Water from House or Chowk: No person shall drain water from his/her own house or chowk onto another person's house, land, or public road. 282. Not to Build Septic Tank Adjacent to Neighbor's Land: (1) No person shall build a septic tank adjacent to the land of the neighbor.

(2) If any person has to build a septic tank on his/her own land, he/she must leave land at least in accordance with the standards prescribed by the concerned body, except where the neighbor's consent has been obtained for the direction of the neighbor's land. 283. Land to be Left when Digging Well or Spring: When any person digs a well or spring on his/her own land, he/she must leave land maintaining a distance of at least one meter from the neighbor's land. 284.
Muluki Civil Code, 2017

283. Land to be Left when Digging Well or Spring: When any person digs a well or spring on his/her own land, he/she must leave land maintaining a distance of at least one meter from the neighbor's land. 284. Not to Plant Trees or Plants that Cause Adverse Effect: (1) No person shall plant trees or plants in a manner that causes an adverse effect on the house, land, or any property of another person.

(2) If a tree or plant planted by a person on his/her own land spreads and causes an adverse effect on the house, land, or other property of another person, the person who planted such tree or plant must cut the branches or roots of such tree or plant that cause adverse effect on others, so as not to cause damage to the house, land, or property of such other person.

(3) If the person who planted the tree or plant does not cut the branches or roots of the tree or plant pursuant to sub-section (2), the person affected thereby may himself/herself cut the branches or roots of such tree or plant. 285. Entitlement to Claim Compensation: If any person suffers damage due to any act or action done under this Chapter, the person affected by the damage may claim reasonable compensation from the person doing such act. 286. Limitation Period: A person affected by any act or action done under this Chapter may file a lawsuit within six months from the date on which he/she came to know of such act or action. Chapter-4

Provisions Relating to Land Cultivation, Possession and Registration

287. Not to Possess Another's Land: No person shall cultivate or possess or cause to possess the land belonging to the right, possession and ownership of another person without his/her consent. 288. Duty to Allow Construction of Canal: (1) If a person needs to construct a canal through the land of another person to cultivate land and requests the land, the concerned landowner shall provide land for constructing such canal from a place deemed appropriate.

(2) In return for providing land for constructing a canal pursuant to sub-section (1), the person constructing the canal shall provide the concerned landowner with substitute land, an amount equivalent to the prevailing price of the land used for the canal, or reasonable compensation.

(3) Notwithstanding anything contained in sub-section (2), if a canal is constructed on public or government land, no substitute land, land price, or compensation shall be provided for the land included in the canal. 289.
Muluki Civil Code, 2017

289. Not to Use Entire Water of River or Stream: No person shall use the entire water of a river or stream originating from or flowing through his/her own land in a manner that prevents the lower riparian landowner from using it, or that renders aquatic creatures in such river or stream unable to survive, or that is adverse to the environment. 290. Not to Construct New Canal Adversely Affecting Irrigated Field: No person shall construct a new canal upstream from an existing and operational canal in a manner that substantially reduces water supply to fields irrigated by the existing canal. 291. Use and Distribution of Canal Water: (1) The person who has contributed labor or expenses for the construction of a canal shall have the first priority to the canal water for the purpose of cultivating land.

(2) Notwithstanding anything contained in sub-section (1), in a place where water has been used according to a customary share distribution from time immemorial, all persons shall have the right to use the canal water according to the share distribution.

(3) After water is sufficient for the person using water pursuant to sub-section (1) or if such person does not require water, any other person, regardless of whose canal it is, shall have the right to use the canal water for the purpose of cultivating land.

(4) If, after the land of a person is irrigated, excess water flows onto the land of another person, it may be used even without the permission of the concerned landowner, and no claim shall lie in respect thereof. 292. Not to Alter Canal without Consent: If a canal built only on the land of a person is also being used by other persons, the landowner on whose land such canal is situated shall not alter the existing canal to another place without the consent of the persons using the canal. 293. Person Not Contributing Labor or Expense for Canal Not to Use Water: (1) When constructing a new canal or maintaining an existing old canal, all persons using the water of such canal shall contribute the necessary labor or expenses in proportion to their respective land.

(2) A person who does not bear labor or expenses when constructing a new canal or maintaining an old canal pursuant to sub-section (1) shall not have the right to use the water of such canal. 294.
Muluki Civil Code, 2017

294. Canal Construction or Water Use Allowed by Mutual Agreement: Notwithstanding anything contained elsewhere in this Chapter, if there is a separate agreement between the concerned landowner or the person constructing the canal or using the water regarding the construction of a canal or use of water for cultivating land, the canal may be constructed or water may be used in accordance with such agreement. 295. Cultivation of Land on Riverbank: If a river or stream enters the middle of a land and divides it, or if a river or stream cuts a piece of land, after the river or stream abandons the land such land shall belong to the concerned person, and he/she may cultivate it. 296. Not to Register: No person shall cause the registration of land belonging to the right of another person in his/her own name. 297. Name Transfer and Entry and Deletion to be Done: (1) If the registered owner of any land dies and the land needs to be transferred to his/her name, or if any land becomes vested in a person's right for any reason and entry/deletion is required, the concerned person shall, within thirty-five days of such event, submit an application to the Land Revenue Office for name transfer and entry/deletion.

(2) If a person submits an application for name transfer and entry/deletion after the expiry of the period referred to in sub-section (1), the Land Revenue Office shall, regardless of the time elapsed, effect the name transfer and entry/deletion in the name of the applicant upon charging a fee of one hundred rupees. 298. Limitation Period: A person affected by any act or action done under this Chapter may file a lawsuit within six months from the date on which he/she came to know of such act or action. Chapter-5

Provisions Relating to Government, Public and Community Property

299. Property Deemed Government Property: Amended by the Act Amending Some Nepal Acts Relating to the Civil Code, 2075.The property specified below, which is under the right, ownership, control, or authority of the Government of Nepal, Provincial Government, and Local Level, shall be deemed government property:-

(a) Government houses, buildings or land,
(b) Roads, pathways or railways,
(c) Forests, jungles or trees and bushes in forests or jungles,
(d) Rivers, streams, lakes, ponds and their banks,
(e) Canals, irrigation channels or fallow, barren land,
(f) Minerals or mineral substances,
(g) Mountains, cliffs, rocks, slopes, riverbanks, public gardens,
(h) Other property excluding property in the name of public, community, trust (`guthi`) or any individual. 300.
Muluki Civil Code, 2017

300. Property Deemed Public Property: (1) The following property kept for public purpose shall be deemed public property:-

(a) Houses, land, drains or roads existing from time immemorial,
(b) Wells, water spouts, water taps, springs, ponds and their banks,
(c) Land containing cattle passages, grazing grounds, pastures, cremation sites, burial grounds, funeral ghats, tombs, cemeteries,
(d) Land containing rest houses (`pati`), covered rest houses (`pauwa`), temples (`deval`), places of religious worship, monuments, monasteries (`math`), temples (`mandir`), chaityas, gumbas, stupas, mosques, Idgahs, graveyards (`kabragah`), churches, courtyards (`chowk`), platforms (`dabali`), resting places (`chautari`) or land on which such structures exist,
(e) Land containing markets, fairs, public recreation or sports grounds,
(f) Private property provided by any person for public purpose,
(g) Other property designated by the Government of Nepal as public property by publishing a notice in the Nepal Gazette.

(2) The ownership of public property shall vest in the concerned public institution or the Government of Nepal. 301. Property Deemed Community Property: Land kept by any community for its own use, any structure built on such land, or other property owned by the community shall be deemed community property. 302. Records to be Kept Updated: (1) The Land Revenue Office shall prepare and keep updated the following records with respect to government and public property located within the district:-

(a) Location or, if land, the plot number and area, and if a house, its status,
(b) If government or public property is under the right, possession or authority of any body or institution, details thereof,
(c) Other necessary matters.

(2) The Local Level shall provide necessary assistance to the Land Revenue Office to prepare the records pursuant to sub-section (1).

(3) After preparing the records pursuant to sub-section (1), the Land Revenue Office shall send one copy each thereof to the concerned District Administrative Office and the Local Level.

(4) The Local Level shall collect and update the records pursuant to sub-section (1) with respect to community property located within its area and send one copy thereof to the concerned Land Revenue Office. 303. Land Ownership Registration Certificate to be Provided: (1) If there is government land in the name of any government body or public institution, the Land Revenue Office shall prepare a Land Ownership Registration Certificate for such land in the name of such body or institution and make it available to such body or institution.

(2) If any land is acquired in the name of any community in accordance with law, the Land Revenue Office shall prepare a Land Ownership Registration Certificate for such land in the name of such community and make it available to such community. 304.
Muluki Civil Code, 2017

304. Duty to Protect Government, Public or Community Property: (1) The Government of Nepal, public institution or community shall itself protect the government, public or community property under its right, possession, charge or authority.

(2) The duty to protect government and public property shall lie with the concerned District Administrative Office and the Local Level.

(3) The duty to protect community property shall lie with the concerned community and the Local Level. 305. Not to Register Government, Public or Community Property in Own Name: (1) No person shall register or cause to be registered government, public or community property in his/her own name.

(2) If any person registers or causes to be registered government, public or community property in the name of a particular individual, such registration shall be automatically void.

(3) If a complaint is lodged regarding the registration of government, public or community property in the name of a particular individual, the concerned Land Revenue Office shall summon the registered owner and others, conduct necessary inquiry, and make a necessary decision within six months of the complaint.

(4) If the registration of any government, public or community property in the name of a particular individual is to be cancelled pursuant to this section, the Land Revenue Officer shall record such fact in the records of his/her office and give notice thereof to the concerned District Administrative Office and the Local Level.

(5) The Land Revenue Office shall impose a fine of twenty-five thousand rupees to one hundred thousand rupees on a person who registers government, public or community land contrary to this section.

(6) Added by the Act Amending Some Nepal Acts Relating to the Civil Code, 2075.Nothing contained in this section shall prevent the initiation of proceedings for punishment of an offense under the prevailing law, where the act of registering government, public or community property in one's own name or in the name of a particular individual also constitutes an offense under such law. 306.
Muluki Civil Code, 2017

306. Not to Encroach Upon or Cultivate Government, Public or Community Land: (1) No person shall encroach upon, usurp, insert, or in any other manner take possession of government, public or community land.

(2) No person shall cultivate or cause to cultivate government, public or community land without the approval of the Government of Nepal, the concerned public institution, or the community.

(3) If any person takes possession of or cultivates government, public or community land contrary to sub-section (1) or (2), in the case of government or public land, the concerned Land Revenue Office, and in the case of community land, the concerned Local Level, shall evict the person and take over the land, and also take the crop produced from such land from such person.

(4) A person who takes possession of or cultivates government, public or community land contrary to this section shall be liable to a fine of up to ten thousand rupees by the Land Revenue Office. 307. Not to Construct Structure: (1) No person shall construct any structure on government, public or community land for private or public purpose. Provided that, in the case of government or public land, a structure may be built for a purpose deemed appropriate by the Government of Nepal, and in the case of community land, a structure may be built by the concerned community for a public purpose.

(2) If any person attempts to construct a structure on government, public or community land contrary to sub-section (1), the concerned Chief District Officer or the Local Level shall immediately stop such activity.

(3) If any person has already constructed a structure on government, public or community land contrary to sub-section (1), the concerned Chief District Officer shall give a deadline of fifteen days to the main person who constructed the structure to demolish it.

(4) Within the deadline given pursuant to sub-section (3), the main person who constructed the structure shall demolish it at his/her own expense.

(5) If the main person who constructed the structure does not demolish it within the deadline given pursuant to sub-section (3), the concerned Chief District Officer shall himself/herself demolish the structure.

(6) If the Chief District Officer demolishes a structure pursuant to sub-section (5), the expenses incurred in demolishing such structure shall be recovered from the main person who constructed the structure, and such person may be fined up to twenty-five thousand rupees for constructing such structure.

(7) If the Local Level requests any assistance regarding the prohibition of construction of any structure pursuant to sub-section (2) or the demolition of an existing structure, it shall be the duty of the concerned police office to provide necessary assistance. 308.
Muluki Civil Code, 2017

308. Government Property may be Transferred: The Government of Nepal may, with the approval of the concerned body or institution, transfer any government property under the right, possession or authority of such body or institution to the name of another body or institution. 309. Community Property may be Converted into Public Property: (1) If any community does not use the community property it holds, or if the community submits an application signed by the heads of all families of that community stating that the community property is not required for use in the community's work, to the concerned Land Revenue Office, the concerned Land Revenue Officer may, after conducting necessary inquiry in that regard, convert such property into public property.

(2) If community property is converted into public property pursuant to sub-section (1), the concerned Land Revenue Officer shall note such fact in the records of his/her office and give notice thereof to the concerned District Administrative Office and the Local Level. 310. Reward to Complainant: (1) Any person may lodge a complaint with the concerned body regarding the registration or causing registration of government, public or community property contrary to this Chapter, the taking possession of land under such property for use or cultivation, or the carrying out of any construction work on such land.

(2) If, upon inquiry, the complaint lodged pursuant to sub-section (1) is found to be true, the concerned body shall provide half of the fine imposed on the person committing such act under this Chapter to the complainant as a reward.

(3) The complaint made pursuant to sub-section (1) may be kept confidential by the concerned body. 311. Action to be Taken: (1) If any employee knowingly registers or causes to register government, public or community property in the name of any person with negligence or carelessness, or if an employee whose duty it is to provide assistance under this Chapter fails to provide any assistance, such employee shall be subject to departmental action in accordance with the law relating to his/her service and conditions.

(2) Nothing in sub-section (1) shall prevent the initiation of proceedings for a criminal offense under the law against an employee who performs an act referred to in sub-section (1), in addition to the action under sub-section (1). 312.
Muluki Civil Code, 2017

312. Government Attorney to have Authority to File Cases or Submit Petitions or Appeals: (1) The concerned government attorney shall have the authority to file cases, submit petitions or appeals under the law against any decision made by any body or officer that adversely affects government or public property.

(2) In relation to filing cases or submitting petitions or appeals pursuant to sub-section (1), the concerned office or officer shall provide necessary documents and other assistance required by the government attorney. 313. Limitation Period: A lawsuit may be filed at any time in relation to sections 305, 306 and 307 of this Chapter, and a person affected by any act or action done under other sections may file a lawsuit within one year from the date on which such act or action was done. Chapter-6

Provisions Relating to Trust (`Guthi`)

314. Trust Deemed Established: Where a person makes necessary arrangements regarding property under his/her right, possession and ownership so that it is operated and managed by another person for the benefit of beneficiaries, a trust (`guthi`) shall be deemed to have been established. Explanation: For the purposes of this Chapter, "beneficiary" means a person, group, general public, unincorporated or incorporated institution or community which benefits from the trust property. 315. Trust may be Public or Private: (1) A trust may be public or private.

(2) A trust established for the following purposes shall be deemed a public trust:-

(a) To establish, operate and use a fund for economic development infrastructure or other development works,
(b) To establish and operate a fund necessary for skill development and creation of employment opportunities for low-income persons,
(c) To operate social welfare programs,
(d) To establish and operate educational and academic institutions useful for the general public, such as schools, colleges, universities,
(e) To establish and operate a medical facility for public purposes, such as a hospital or health post,
(f) To preserve or promote natural, historical or cultural heritage,
(g) To operate programs for the conservation of wildlife, aquatic creatures, or the environment,
(h) To operate programs for the protection, welfare or upliftment of various classes, groups or communities,
(i) To operate sports related programs,
(j) To perform service-oriented welfare activities,
(k) To conduct rescue operations,
(l) To operate monasteries (`math`), temples (`mandir`), gumbas, chaityas, mosques, churches or similar religious acts,
(m) To operate other public programs for the public interest.

(3) A trust established with the purpose of providing benefit, advantage or facility to a specific person or particular group shall be deemed a private trust.

(4) If a trust is established to fulfill both public and private purposes, such trust shall be deemed a public trust. 316.
Muluki Civil Code, 2017

316. Application to be Submitted to Establish Trust: (1) A person wishing to establish a trust shall submit an application to the Registrar (`Panjikadhikari`) stating the following details:-

(a) The value of the property set aside for the trust and its description,
(b) The beneficiary and the benefit, facility, its conditions and extent to be received by him/her,
(c) If the trust is to be established for a specific period, matters relating thereto,
(d) Other necessary details.

(2) When submitting an application pursuant to sub-section (1), the following documents shall also be submitted with the application:-

(a) The trust deed (`Sthapanapatra`),
(b) The name of the trustee and a copy of the document regarding his/her consent,
(c) If there is any document for establishing the trust, a copy of such document,
(d) A reliable document regarding the identity of the trust founder, and if an incorporated institution is the founder, a certified copy of the document relating to the establishment of such incorporated institution and a certified copy of the decision of such incorporated institution regarding the establishment of the trust,
(e) A receipt of payment of the fee required by law for registration of the trust. Explanation: For the purposes of this Chapter,-

(1) "Registrar" means the officer provided for by law for the registration, supervision and dissolution of trusts, and in the absence of such provision, the term refers to the Land Revenue Officer of the concerned district.

(2) "Trustee" means the person entrusted with the responsibility of operating and managing the trust property.

(3) Notwithstanding anything contained in sub-section (1), if a person has made arrangements for property under his/her right, possession and ownership to be operated and managed as a trust by virtue of his/her oral conduct, behavior, or by a gift that takes effect after his/her demise, the trust shall be deemed established in accordance with such conduct, behavior, or gift. Provided that, in the case of property for which registration is required for transfer of title under law, the relevant document must have been registered.

(4) If a foreign person wishes to establish a trust, he/she shall fulfill the procedure under sub-sections (1) and (2) and submit an application. Such foreign person may be the founder of the trust so established. Provided that, a foreign person shall not establish a trust to fulfill the purpose under clause (j) of sub-section (2) of section 315.

(5) In a trust established pursuant to sub-section (4), at least one-third of the trustees shall be Nepali citizens having permanent residence in Nepal. 317.
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Provided that, a foreign person shall not establish a trust to fulfill the purpose under clause (j) of sub-section (2) of section 315.

(5) In a trust established pursuant to sub-section (4), at least one-third of the trustees shall be Nepali citizens having permanent residence in Nepal. 317. Details to be Included in Trust Deed: The following details shall be included in the trust deed:-

(a) Name, surname, and address of the trust founder, and if an incorporated institution is the founder, the name, surname, and address of its directors,
(b) Purpose and nature of the trust,
(c) Name, surname, and address of the trustee and description of the work to be performed by him/her, and if an incorporated institution is the trustee, the name, surname, and address of the person designated by such institution to act as trustee,
(d) Details of the beneficiary,
(e) Method of using the trust property,
(f) If the term of the trustee is specified, details thereof,
(g) If the trustee receives remuneration or any other facility, details and limits thereof,
(h) If the trust is to be established for a specific period, such period,
(i) Consequences upon termination of the trust,
(j) Provisions relating to operation, management and monitoring of trust property,
(k) Other necessary matters. 318. Trust to be Registered: (1) Upon receiving an application to establish a trust pursuant to section 316, if the Registrar, after conducting necessary inquiry regarding the purpose of the trust and the description of the property proposed to be established as trust, finds it reasonable to register the trust, he/she shall register the trust and issue a certificate of trust registration within thirty-five days of the application.

(2) If the trust is registered pursuant to sub-section (1), the trust shall be deemed established.

(3) Notwithstanding anything contained elsewhere in this section, a private trust may be operated even without registration. Provided that, if any person operates a private trust in such manner, he/she shall inform the concerned Registrar thereof. 319.
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Provided that, if any person operates a private trust in such manner, he/she shall inform the concerned Registrar thereof. 319. Registration of Trust may be Refused: (1) Notwithstanding anything contained in section 318, the Registrar may refuse to register a trust in the following circumstances:-

(a) If the details, documents and fee under section 316 are not mentioned or submitted,
(b) If the name of the trust matches the name of any other trust already registered before the registration of such trust,
(c) If the purpose or condition of the trust appears inappropriate or undesirable due to public interest, morality, etiquette or public order, is not lawful, or is uncertain or ambiguous and incapable of implementation.

(2) If a trust is not to be registered pursuant to sub-section (1), the Registrar shall inform the applicant within thirty-five days, stating the reason therefor.

(3) If, after receiving information pursuant to sub-section (2), the applicant corrects the necessary matters and reapplies for registration of the trust, the trust shall be registered within fifteen days of such application and a certificate of trust registration shall be issued pursuant to sub-section (1) of section 318. 320. Property to be Transferred to Establish Trust: (1) The trust founder shall transfer the property set aside for the trust to the trustee within three months of the establishment of the trust.

(2) If the property to be transferred pursuant to sub-section (1) is immovable, it shall be deemed duly transferred only if such property is transferred in accordance with law.

(3) A foreign person establishing a trust in Nepal shall bring movable property equivalent to at least ten million US dollars into Nepal through regular banking channels within three months and entrust it to the trustee.

(4) Information regarding entrustment of movable property pursuant to sub-section (3) shall be given to the Registrar. 321. Trust Dissolved if Property not Transferred: If the property is not transferred within the period under section 320, the registration of such trust shall be automatically cancelled and the trust shall be deemed dissolved. 322.
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323. Trust Property to be Operated and Managed in Appropriate Manner: (1) The trustee shall use his/her ability and discretion honestly to operate and manage trust property in an appropriate manner.

(2) When operating and managing trust property pursuant to sub-section (1), arrangements shall be made to ensure its sustainable maintenance without damage or loss to such property.

(3) Unless otherwise provided in the trust deed, when operating and managing trust property pursuant to sub-sections (1) and (2), the amount of income derived from property not immediately necessary for fulfilling the purpose of the trust may be invested to fulfill the purpose of the trust.

(4) Unless otherwise provided in the trust deed, when investing pursuant to sub-section (3), investment may be made in the following proportions of the total amount to be invested at that time:-

(a) At least twenty-five percent of the amount by purchasing bonds, treasury bills issued by the Government of Nepal or Nepal Rastra Bank, or bonds guaranteed by the Government of Nepal,
(b) Up to twenty-five percent of the amount by depositing in fixed deposit accounts of commercial banks,
(c) Up to ten percent of the amount by depositing in fixed deposit accounts of development banks,
(d) Up to five percent of the amount by purchasing ordinary shares of commercial banks,
(e) Up to ten percent of the amount by depositing in fixed deposit accounts of finance companies,
(f) Up to five percent of the amount by purchasing ordinary shares of listed public limited companies that are publicly traded.

(5) The trustee shall monitor the investments made pursuant to sub-section (4) from time to time, and if upon such monitoring the return on investment in one sector appears low, such investment may be withdrawn subject to the terms and conditions of the investment and invested in another sector with higher return.

(6) When monitoring or investing pursuant to sub-section (5), the opinion of an expert in the relevant field may be obtained as necessary.

(7) The opinion obtained pursuant to sub-section (6) may be taken as a basis for monitoring or investment.

(8) The trustee shall keep his/her personal property and trust property separate and manage and operate them accordingly, and if accounts need to be operated, separate accounts shall be maintained. 324.
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324. Trustee to be Appointed: (1) A trustee shall be appointed to operate, manage, protect, and maintain the trust property, and to use the benefits derived from such property for the beneficiary or make appropriate arrangements therefor.

(2) Unless otherwise provided in the trust deed, the trust founder shall appoint the trustee.

(3) If a trustee is not appointed or cannot be appointed pursuant to sub-section (1) or (2), the trust founder himself/herself shall be deemed to be the trustee. 325. Disqualification of Trustee: The following persons shall not be qualified to be a trustee:-

(a) A person disqualified from entering into a contract,
(b) A person who has misappropriated property under his/her charge,
(c) A person convicted by a court of an offense of corruption,
(d) A person who has been punished for a criminal offense involving moral turpitude,
(e) A person who is the sole beneficiary of the property under trust operation. 326. Number of Trustees: Unless otherwise provided in the trust deed, subject to other provisions of this Chapter, the number of trustees shall be at least one and at most eleven. 327. Incorporated Institution may be Trustee: (1) An incorporated institution established in accordance with law may be appointed as a trustee. (2) If an institution under sub-section (1) is appointed as a trustee, the person who acts as its chief or the person delegated with authority by a decision of the board of directors of such institution shall act on behalf of such institution. Explanation: For the purposes of this section, "person who acts as its chief" means the chairperson, director, managing director, general manager, executive director, or any person authorized by such institution to act as its head. 328.