Judicial System Challenges 2026

Nepal's government amended the Constitutional Council's quorum and appointment rules by ordinance, lowering consensus requirements and controversially elevating a junior justice to Chief Justice, triggering warnings of court capture from international bodies.

Three senior Supreme Court justices in Nepal reportedly faced pressure to resign and threats of impeachment amid political interference concerns and constitutional amendments raising questions on judicial independence.

The Nepal government declared all metered interest related documents invalid per a new agreement with victims, but faces legal challenges given conflicts with existing laws and the need for judicial or special legislative action for nullification.

The leadership dispute in the Nepali Congress has returned to the Supreme Court as the Deuba faction filed a review petition challenging the Election Commission’s recognition of Gagan Kumar Thapa's faction as the legitimate leadership.

Nepal’s Supreme Court launched a judicial governance centre to directly address complaints against courts nationwide, receiving 186 complaints since June 3 with a 57% resolution rate, primarily concerning delays in judicial procedures.

The Gen Z protests inflicted severe damage on Nepal's court infrastructure and records, causing a nationwide judicial shutdown for nearly four months and a historic low in Supreme Court case clearance rates, intensifying calls for decentralizing judicial power.

For the first time in fiscal year 2082/83, Nepal's high courts resolved all cases older than 18 months, with an overall judiciary case resolution rate surpassing 54% and 14 out of 18 benches clearing their case backlogs.

The Supreme Court disclosed the top 10 judges with the most case decisions in fiscal year 2082/83, led by Judge Teknarayan Kunwar with 1,421 cases decided, reflecting a 70.36% case disposal rate in high courts.

Lawyer Swagat Nepal condemned the Kathmandu District Court's decision on the fake Bhutanese refugee case, alleging acquittal despite evidence against major politicians and criticizing government citizenship policy for illicit practices.

The coalition government of Nepali Congress, CPN (UML), and Nepali Communist Party continues under Chief Minister Krishna Prasad Yadav in Madhesh Province to ensure political stability and development.

Political alliances between Nepali Congress and CPN-UML are destabilizing across seven provinces, notably Gandaki, where the Rastriya Prajatantra Party advocates constitutional amendments to ease federalism's challenges and financial burdens.

Nepal amended its Public Procurement Act 2007 to impose criminal liabilities for misuse of advance payments, shorten bidding timelines, and replace lowest-price awards with average bid evaluations to improve contract processes.

Within 100 days of the Balendra Shah government taking office, the Supreme Court suspended or examined key government actions, including the Property Inquiry Commission's work, media advertising policies, and Nepal Airlines board appointments.

Senior Advocate Bijaya Prasad Mishra highlighted risks to Nepal's judiciary independence due to political interference in judicial appointments, including the elevation of the fourth-ranked judge as Chief Justice and discretionary bench formations. The Nepal Bar Association advocates reforms focused on justice quality rather than case numbers or populist pressures.

The Nepalese government has largely failed to enforce Supreme Court rulings on environmental issues, border disputes, expatriate voting rights, and minority protections, with significant backlogs in fines, prison terms, and victim compensation.

Kathmandu District Court convicted former deputy prime minister and ex-home minister among others in Nepal's fake Bhutanese refugee scam involving at least Rs 288 million fraud; seven defendants were acquitted due to insufficient evidence.

Amid global trends, Nepal faces intensified debate over public disclosure of judges' assets; while judges must submit assets to the Judicial Council, the details remain confidential, with judicial bodies resisting public disclosure citing legality and security concerns.

Nepal's judiciary approved artificial intelligence for legal research and administration but banned its use in drafting judgments to preserve judicial discretion, formalized in the Judiciary Information and Communication Technology Policy 2026.

Despite federalization of executive and legislative branches, Nepal's judiciary remains centralized without local courts, impeding justice access especially in remote areas due to costly, slow processes.

A decade after constitutional mandate, Nepal has not formed local courts, with judicial committees handling limited disputes and causing rising burdens on district and Supreme Courts.

Special Court granted bail of Rs 300,000 to Rs 500,000 to officials accused in e-passport corruption case, amidst controversy and confirmation of project continuation by Foreign Minister.

Supreme Court ordered government investigation into 15-year-old Nepal Airlines purchase of Chinese aircraft causing billion-rupee losses amid corruption and political interference allegations.

Nepal Supreme Court struggles with more than 27,000 pending cases, some over seven years, prompting calls for judicial reform including expanding justices and redefining jurisdiction.

Nepal's government asset scrutiny commission faces resistance as only 10,000 of 25,000 officials filed disclosures, with retired judges challenging the commission's legality and urging boycott.

Ncell delays payment of Rs 840 million frequency fees and other tax liabilities totaling over Rs 85 billion by litigation, with Supreme Court reducing some liabilities but many cases unresolved.

Supreme Court scheduled hearing writ petitions challenging Attorney General Dr. Narayan Prasad Kandel's constitutional qualifications and seeking to quash his appointment and oath.

Nepal's largest money laundering case worth over Rs 115 billion registered at Special Court targeting 39 individuals and companies linked to illicit financial activities.

Deepak Bhatta and associates face criminal charges for multi-billion-rupee money laundering and financial fraud through complex transactions involving banking and securities violations.

Special Court ordered submission of arguments in corruption case against former Nepal Telecom MD Sunil Poudel and 18 others over alleged financial irregularities during billing system upgrade.

Kathmandu District Court progressed toward concluding hearing a fraud case involving false portrayal of Nepali citizens as Bhutanese refugees, with 30 accused including prominent politicians.