In a significant legislative move, the Government of Nepal has passed the Arbitration (Amendment) Bill 2025, aiming to modernize and streamline the country’s arbitration process. The bill was approved by a majority in the House of Representatives after months of consultation with legal professionals, business leaders, and dispute resolution experts.

The Government of Nepal has officially passed the Arbitration (Amendment) Bill 2025, signaling a major step toward institutionalizing and modernizing arbitration practices across the country. The newly introduced bill emphasizes faster resolution, promotes institutional arbitration, and recognizes the role of digital tools in dispute resolution.

One of the bill’s central features is the mandatory 12-month timeline for delivering arbitral awards, with limited options for extensions. This is expected to reduce the long delays often associated with ad hoc arbitration. In addition, the bill encourages parties to engage with recognized arbitration institutions such as the Nepal Arbitration Centre (NAC), to improve procedural consistency and transparency.

The legislation also formalizes the use of digital means for hearings and submissions, including virtual hearings, e-signatures, and online filing, allowing parties from remote areas or international locations to participate without logistical barriers.

Legal experts across the country have welcomed this reform. “This bill makes arbitration more credible and reliable in Nepal. It aligns us with international standards,” said Rajan Joshi, a commercial lawyer based in Kathmandu.

The bill has laid a strong foundation for promoting alternative dispute resolution mechanisms in Nepal’s evolving legal landscape. With its implementation, businesses, investors, and legal professionals expect a more streamlined, cost-effective, and neutral platform for resolving complex commercial disputes.