chhatramani/nepal_legal_text_corpus_v1 huggingface dataset:
National Civil Code 2074

Section 40, Sub-section (5): If a person already declared dead pursuant to sub- section (4) comes back alive and files a petition in person to get the judicial declaration made earlier to be annulled or if his or her successor files a petition for amendment to the previous judicial declaration on death for the reason that the date of death of such deceased happened to be different than the date referred to in the judicial declaration, the court shall, having examined into this matter, annul or amend the judicial declaration made pursuant to sub-section (4). Provided that- Section 40, Sub-section (1): Where a living wife has concluded another marriage after such declaration, the matrimonial relationship with the person declared to be dead cannot be re-established. Section 40, Sub-section (2): There shall be no adverse effect on the legal right of the person declared to be dead. Section 40, Sub-section (3): The act that has already been carried out pursuant to the previous judicial declaration shall not be prejudiced by virtue of the establishment of a new date of death. Section 40, Sub-section (4): The right, interest or concern of the person provided by law shall not be affected by any act done or action taken pursuant to clause (3). Section 41: Statute of limitation Section 41: A person aggrieved from any act done or action taken under this Chapter may make a lawsuit as follows: Section 41, Clause (a): In the case of the circumstance referred to in Section 36, within three months after the date on which such act was done or action taken, Section 41, Clause (b): In the case of the circumstance referred to in sub- section (5) of Section 40, within one year after the date of knowledge of such an act or action, Section 41, Clause (c): In any circumstance other than that referred to in clauses (a) and (b), within six months after the date on which such an act was done or action taken. Section 42: Legal person to acquire competency Section 42, Sub-section (1): A body corporate incorporated pursuant to law shall obtain legal personality, and obtain legal competency in the same capacity. Section 42, Sub-section (2): In order to obtain legal competency pursuant to sub- section (1), any body shall be registered in accordance with law. Section 42, Sub-section (3): Except where a separate provision has been made by law for registration pursuant to sub-section (2), an application shall be made to the competent authority, setting out the following matters: Section 42, Sub-section (3), Clause (a): Name of the body corporate, Section 42, Sub-section (3), Clause (b): Head office of the body corporate, and address of such office, Section 42, Sub-section (3), Clause (c): Objectives and functions of the body corporate, Section 42, Sub-section (3), Clause (d): Details of the capital structure, if any, of the body corporate, Section 42, Sub-section (3), Clause (e): Other necessary details. National Civil Code 2074
National Civil Code 2074

Section 42, Sub-section (4): After the registration of a body corporate pursuant to sub-section (2), such a body shall be deemed to have been incorporated. Section 42, Sub-section (5): A legal person shall have a corporate personality and use a separate seal for its activities. Section 42, Sub-section (6): A body incorporated pursuant to this Section shall be an autonomous and body corporate with perpetual succession, and may, in the same capacity, subject to law, carry out as a person the following functions: Section 42, Sub-section (6), Clause (a): To acquire, hold, earn, possess, dispose off, sell or otherwise manage a property, Section 42, Sub-section (6), Clause (b): To execute a contract, exercise rights and discharge obligations under the contract or to assume any kind of right or obligation in any other way, Section 42, Sub-section (6), Clause (c): To frame statute or bye-laws required to operate its own functions, proceedings or business, Section 42, Sub-section (6), Clause (d): To appoint necessary employees based on law to carry out its functions, Provided that the commissions, institutions or bodies referred to in clause (g) of Section 44 shall not be allowed to appoint employees. Section 42, Sub-section (6), Clause (e): To open branches or other offices, subject to its statute and bye-laws, Section 42, Sub-section (6), Clause (f): To open an account in a bank or financial institution and to operate the account, Section 42, Sub-section (6), Clause (g): To carry out other functions according to law. Section 42, Sub-section (7): A legal person may sue or initiate other legal action and may also be sued or subjected to other legal action by its name. Section 43: To obtain legal competency upon incorporation Section 43, Sub-section (1): A legal person shall, upon its incorporation, obtain legal competency to carry out civil and commercial acts and transactions, in addition to the acts mentioned in Section 42. Section 43, Sub-section (2): The legal competency obtained pursuant to sub-section Section 43, Sub-section (1): shall continue to exist until the legal person is liquidated, dissolved or wounded up in accordance with law. National Civil Code 2074
National Civil Code 2074

Section 44: Legal competency deemed to be acquired, ipso facto Section 44: Notwithstanding anything contained in Section 42, the following body, as a legal person, shall be deemed to have, ipso facto, obtained competency: Section 44, Clause (a): The State of Nepal, Section 44, Clause (b): The Government of Nepal, Section 44, Clause (c): The Federal Parliament or Legislature-Parliament, Section 44, Clause (d): A court, constitutional body or any office thereunder, Section 44, Clause (e): A Ministry, Secretariat, Department of the Government of Nepal and any other government office, Section 44, Clause (f): A Province, Section 44, Clause (g): The Province Government or Provincial level Government offices, Section 44, Clause (h): A Provincial Assembly, Section 44, Clause (i): A Rural Municipality, Municipality or District Assembly or Local Level government office under such a body, Section 44, Clause (j): A commission, committee or similar other body set up in accordance with law by the Government of Nepal, Provincial Government or Local Level Government, Section 44, Clause (k): A corporation, corporate body or body set up in accordance with law, Section 44, Clause (l): Any organization established for public purpose such as a shrine, temple, deity place, Chaitya, monastery, mosque, church, public rest house, public inn, and graveyard remained in operation from the time immemorial and in possession of a property, Section 44, Clause (k): A community school, college or university established for public purpose. Section 45: Address of location of legal person Section 45: The address of location of a legal person shall be as specified at the time of incorporation of the body corporate, and where such address is not so specified, the address where its headquarters or registered office is located and where such office or address also is not specified, the address where the main administrative office or transaction and business of such a body corporate is located shall be considered to be its address of location. Section 46: Management and operation of legal person Section 46, Sub-section (1): A legal person shall, except as otherwise provided by law, be managed and operated in accordance with the provisions set forth in the statute of such a person, and where such provisions is not made, it shall be managed and operated by one or more directors. Section 46, Sub-section (2): The legal person shall be responsible for the management and operation made by the director or directors pursuant to sub-section (1). Section 47: Operation of business of legal person Section 47, Sub-section (1): In operating business on behalf of a legal person, the business shall, except as otherwise provided by law, be operated by the decision of directors of such a person. Section 47, Sub-section (2): In operating business pursuant to sub-section (1), the director may delegate powers to any director or other person to operate any business. National Civil Code 2074
National Civil Code 2074

Section 48: Right or liability to devolve upon merger of legal person Section 48, Sub-section (1): If a legal person is, for any reason, merged with another legal person, the right or liability of such person shall be as specified at the time of such merger. Section 48, Sub-section (2): If not specified pursuant to sub-section (1), the right or liability of the legal person to be merged shall devolve on the legal person with which such a person is merged. Section 49: Legal person may become agent Section 49: A legal person may, subject to law, act as an agent of any other person. Section 50: Not to participate in decision-making in case of conflict of Section 50: interest: (1) A member or director of any body or institution shall not take part in the decision making process on a matter involving his or her personal interest. Section 50, Sub-section (2): If a decision is affected by the conflict of interest under sub-section (1), such a decision shall be void. Section 51: Legal person to be liable Section 51: If a loss or damage is caused to a person from an act done and action taken by a person on behalf of a legal person, such a legal person shall be liable and bear compensation therefor. Provided that if any loss is caused by doing an act beyond the objective or competency of the legal person or dishonestly, the director or a person doing such act shall personally be liable therefor. Section 52: Assets or liability to be settled Section 52: If a legal person is dissolved for any reason, the assets and liabilities of such a person shall be settled in accordance with law. Section 53: Statute of limitation Section 53: A person aggrieved from any act done or action taken under this Chapter may make a lawsuit within three months after the date of knowledge of such an act or action in the cases of Section 50 and within six months after the date on which such an act was done or action taken, in the other cases. Section 54: Bankruptcy proceedings may be initiated Section 54, Sub-section (1): If a person’s debts and other liabilities to be borne by him or her exceed his or her assets, bankruptcy proceedings may be initiated for payment or recovery of debts or settlement of liabilities from such assets. National Civil Code 2074
National Civil Code 2074

Section 54, Sub-section (2): Notwithstanding anything contained in sub-section (1), no bankruptcy proceedings may be initiated in the following circumstances: Section 54, Sub-section (2), Clause (a): If a person who has regular income or is certain to earn income in the future proves that his or her income can pay or set off debts or other liabilities in a certain period or the creditor is satisfied in such matter, Section 54, Sub-section (2), Clause (b): If a person likely to be a bankrupt asks for a period of up to five years specifying the period of time to repay the debts of creditors and sources thereof from the date of origin of conditions necessitating the commencement of bankruptcy proceedings in order to enjoin or cause to be enjoined from initiating that proceedings, Section 54, Sub-section (2), Clause (c): If the creditor does not agree to initiate, or cause to be initiated, bankruptcy proceedings. Explanation: Section 54, Sub-section (1): For the purposes of this Chapter, the term "assets" means the concerned person's property standing for the time being or to be earned or likely to be earned up to the time prior to the completion of bankruptcy proceedings pursuant to this Chapter. Section 54, Sub-section (2): For the purposes of clause (c), the term "creditor" means, where there are more than one creditor, creditors or a group of creditors who hold fifty percent or more debts out of the total debts of the person likely to become bankrupt. Section 54, Sub-section (3): If a debt or claim of a creditor is settled from the assets of a person under this Chapter, such a person shall be deemed to become a bankrupt. Section 54, Sub-section (4): The court shall send the record of the person being bankrupt pursuant to sub-section (3) to the bankruptcy administration office established for that purpose. Section 54, Sub-section (5): The bankruptcy administration office shall update the records referred to in sub-section (4). Section 54, Sub-section (6): Any person declared bankrupt pursuant to sub-section Section 54, Sub-section (3): shall not be required to repay debt or fulfill the obligation other than the debt or obligation he or she has to pay or fulfill and settle under this Chapter. National Civil Code 2074
National Civil Code 2074

Section 54, Sub-section (7): Notwithstanding anything contained in sub-section (6), the following obligation shall be fulfilled from the trade, business or transaction he or she starts after his or her declaration of being bankrupt: Section 54, Sub-section (7), Clause (a): Tax, fee or charge to be paid to the Government of Nepal, Province Government or Local Government Section 54, Sub-section (7), Clause (b): Amount of penalty or fine to be paid according to the order of a court, Section 54, Sub-section (7), Clause (c): Amount to be paid for the embezzlement of property of the person under his or her guardianship or curatorship, Section 54, Sub-section (7), Clause (d): Amount to be paid for the goods stolen, Section 54, Sub-section (7), Clause (e): Amount to be paid for the embezzlement of property of a trust. Section 54, Sub-section (8): Notwithstanding anything contained elsewhere in this Section, if any person becomes bankrupt, he or she may carry on any trade, business or transaction other than any act or activity he or she is prohibited from doing or taking in that capacity according to law. Section 55: Petition to be filed to initiate bankruptcy proceedings Section 55, Sub-section (1): A person who is likely to become a bankrupt may himself or herself, or a creditor or group of creditors having claim of at least twenty- five percent or more of the total debts if the amount of debts is disclosed and, if the amount of debts is not disclosed, a creditor or group of creditors having claim of more than five hundred thousand rupees borrowed by such a person, may file a petition in the court, in order to initiate bankruptcy proceedings. Section 55, Sub-section (2): In filing a petition by a person likely to become a bankrupt for bankruptcy pursuant to sub-section (1), the petition shall specify the following details: Section 55, Sub-section (2), Clause (a): Actual statement of his or her total assets and value thereof, Section 55, Sub-section (2), Clause (b): Statement of total amount of debts borrowed by him or her, interest accrued thereon and details of the creditor or creditors having lent such debts, along with their addresses, Section 55, Sub-section (2), Clause (c): If he or she has to discharge other liabilities, details thereof, Section 55, Sub-section (2), Clause (d): The reason for the failure to repay or discharge debts and other liabilities. National Civil Code 2074
National Civil Code 2074

Section 55, Sub-section (3): In filing a petition by a creditor or group of creditors for bankruptcy pursuant to sub-section (1), the petition shall specify the following details: Section 55, Sub-section (3), Clause (a): Evidence indicating that the borrower is likely to be a bankrupt, Section 55, Sub-section (3), Clause (b): Statement of the assets of the borrower and approximate value thereof, to the extent of the petitioner's knowledge, Section 55, Sub-section (3), Clause (c): Statement of the petitioner’s claim, and if the petitioner has knowledge of other creditor's debt or claim, such debt or claim, Section 55, Sub-section (3), Clause (d): Details including addresses of the creditors. Section 55, Sub-section (4): Prior to filing a petition pursuant to sub-section (1) to initiate bankruptcy proceedings, a creditor or group of creditors shall give a notice to the borrower indicating that the borrower shall repay his or her debts or discharge other liabilities within a period of at least three months and that in the event of failure to repay the debts within that period, a petition shall be filed in the court to initiate bankruptcy proceedings. Section 56: Notice to be given to creditor Section 56, Sub-section (1): If a petition is filed by a borrower pursuant to Section 55 to initiate bankruptcy proceedings, the court shall issue a notice of thirty-five days and serve the same on the creditor or group of creditors whose debts the borrower has specified as due and payable and publish the notice in any national daily newspaper. Section 56, Sub-section (2): The notice to be published pursuant to sub-section (1) shall also contain a statement inviting any other person having any type of claim, if any, over the assets of the person whose assets is under bankruptcy proceedings to make a claim with evidence within the time-limit as specified in the same sub-section. Section 56, Sub-section (3): The claim made within the time-limit referred to in sub-section (1) or (2) by the creditor or group of creditors or by other person shall be considered to be the final claim made against the assets of the borrower, and the bankruptcy proceedings of his or her assets shall commence on the same basis. Section 57: Notice to be given to borrower Section 57, Sub-section (1): If a petition is filed by a creditor or group of creditors pursuant to Section 55 to initiate the bankruptcy proceedings of the assets of the borrower, the court shall serve a notice, along with a time-limit of thirty-five days, on the borrower to appear before the court, along with a reply whether or not the bankruptcy proceedings require to be instituted, and if there exists any ground for not instituting the bankruptcy proceedings, and evidence thereof. National Civil Code 2074
National Civil Code 2074

Section 57, Sub-section (2): If a notice is served on the borrower pursuant to sub- section (1), a notice shall be given to the other creditor or claimant to submit a claim in that respect within a period of thirty-five days and such a notice shall be published in any national daily newspaper. Section 57, Sub-section (3): The claim of a person who fails to submit a claim within the period referred to in sub-section (2) shall not be valid after that period. Section 57, Sub-section (4): The fee to be incurred in publishing a notice in a national daily newspaper pursuant to sub-section (2) or sub-section Section 57, Sub-section (1): of Section 56 shall be recovered from the concerned petitioner. Section 57, Sub-section (5): The fee recovered pursuant to sub-section (4) may be awarded to be paid by the debtor in the course of bankruptcy. Section 58: Order to be given to initiate bankruptcy proceedings Section 58, Sub-section (1): If a petition is filed in the court pursuant to Section 55 to initiate the bankruptcy proceedings, the court shall make order as to whether it would be appropriate to initiate the bankruptcy proceedings in respect of that petition or not. Section 58, Sub-section (2): If an order is made to initiate the bankruptcy proceedings pursuant to sub-section (1), the court shall, at the request of the person likely to become bankrupt himself or herself or of the creditor, order any other family member of such a person to maintain status quo of the assets of the person in respect of whose assets the bankruptcy proceedings are to commence, for the purpose of bankruptcy. Section 58, Sub-section (3): If the court thinks that the assets of the person likely to be bankrupt may be embezzled or may not be properly managed if such a person or his or her family member is allowed to manage the assets, the court may, on the basis of the petition by the party or suo motu, entrust the responsibility for management of such assets to any of the following persons: Section 58, Sub-section (3), Clause (a): A person licensed as bankruptcy professional pursuant to law, Section 58, Sub-section (3), Clause (b): A bankruptcy trustee appointed pursuant to law, Section 58, Sub-section (3), Clause (c): The concerned ward committee of the Local Level, Section 58, Sub-section (3), Clause (d): Such an officer employee of the court or law practitioner as designated by the court. Section 58, Sub-section (4): The Local Level, trustee or person designated pursuant to sub-section (3) shall manage the assets of the person likely to become bankrupt, in accordance with the order of the court. National Civil Code 2074
National Civil Code 2074

Section 59: Transaction to be, ipso facto, stayed or void Section 59, Sub-section (1): If a court makes an order, pursuant to sub-section (1) of Section 58, to initiate the bankruptcy proceedings in relation to the assets of a person, any of the following acts cannot be carried out after the making of such an order, and if any of such acts has already commenced or is being carried out but not completed, such act shall, ipso facto, be stayed: Section 59, Sub-section (1), Clause (a): To transfer in any manner to any person the title to, bail, pledge, mortgage or to lease or rent in any manner for a period exceeding one year, the assets of a person who is likely to become bankrupt, Section 59, Sub-section (1), Clause (b): To attach, or execute the pledge, mortgage of, the assets of the person likely to become bankrupt pursuant to the judgment of a court, Section 59, Sub-section (1), Clause (c): To repay debt or discharge liability of any creditor from the assets of the person likely to be bankrupt. Section 59, Sub-section (2): Any deed, contract, dealing, transaction or arrangement executed in contravention of the provision set forth in sub-section Section 59, Sub-section (1): shall, ipso facto be deemed to have been void. Section 60: Opportunity to be provided to reconcile sum of debts Section 60, Sub-section (1): If the court has made an order to commence the bankruptcy proceedings pursuant to sub-section (1) of Section 58, the Local Level, trustee or person, as the case may be entrusted with responsibility to manage property pursuant to sub-section (3) of the same Section shall, after the assets, debts and other liabilities of the borrower are ascertained, call a meeting of the debtors, creditors or other claimants. Section 60, Sub-section (2): In the meeting called pursuant to sub-section (1), the creditor or claimant shall be provided with a reasonable opportunity to waive his or her claim wholly or partly from all or any of the assets of the borrower or to reconcile sum by taking amount lesser than his or her claim, by mutual understanding between the person likely to become bankrupt and the creditor or other claimant. Section 60, Sub-section (3): In making reconciliation of sum pursuant to sub- section (2), an arrangement may be so made that a creditor pays the debt or claim of some or most creditors and submits a lump sum claim against such a person. Section 60, Sub-section (4): If the parties reach mutual understanding pursuant to sub-section (2) or (3) or the concerned parties agree, for any reasons, to stay the bankruptcy proceedings for the time being, a joint petition may be filed in the court accordingly. National Civil Code 2074