Commercial litigation in Nepal/Corporate Litigation in Nepal

Published Date: 2023-03-15

Commercial litigation in Nepal/Corporate Litigation in Nepal

Cambridge dictionary defines litigation as, “the process of causing a disagreement to be discussed in a court of law so that an official decision can be made about it.” Engaging in commercial litigation can be daunting when you lack the right resources. The commercial litigation practice area is extensive and the attorneys who engage in this practice area have dedicated themselves to their craft. Relying on resources such as this one can help you to develop a better understanding of what commercial litigation entails as well as how to prepare yourself for engaging in commercial litigation.

To put it most simply, civil litigation is a lawsuit between individuals, where criminal charges are not involved. Any time there are two or more parties involved in a non-criminal legal dispute, what results is considered to be civil litigation. Typically, in civil litigation, the parties are suing to enforce or to defend a legal right, and the suing party (the Plaintiff) is seeking to be compensated with either monetary damages or some action (specific performance.)
A commercial dispute results when one or more of these parties is a business entity such as a partnership or a corporation. Commercial and corporate litigation possess both similarities and differences as compared to traditional civil litigation matters. Understanding the definition of a commercial dispute, and what commercial disputes are, will help clarify those similarities and differences. Commercial litigation and other types of civil litigation typically proceed in the same way. The Plaintiff retains an attorney, both sides conduct factual investigations, attorneys on both sides research applicable law, engage in settlement negotiations, the Plaintiff’s attorney files the lawsuit, both sides conduct discovery, participate in motion practice, go before a judge or jury to try the case, file motions post-trial, and whatever else may be required depending on the specific case.

Examples of Commercial Litigation:

There are many different types of commercial litigation cases, as shown below. Although this list is by no means exhaustive, all of the following types of cases fall under the umbrella of commercial litigation and would be best handled by a commercial litigator.
• Case Related to Company Act, 2063
• Case Related to Bank & Financial Act, 2073
•  Case Related to Partnership Act, 2020
•   Industrial Enterprises Act, 2075
•  Labor Act, 2074
•  Case Related to Foreign Investment and Technology Transfer Laws in Nepal
• Class Action Lawsuits
• Construction Cases
•  Employment Cases

A commercial litigation attorney is specifically educated, trained, and experienced in litigation aimed at businesses and business-related litigation. Such a lawyer’s role will imply various specific responsibilities depending on if they are tasked with representing a commercial client or an individual in such a case.
Commercial litigation is different from other types of litigation. The primary difference that commercial and corporate litigation brings over other types of litigation is simply who is involved in the litigation. Because there are businesses involved in the litigation, the issues involved also tend to be more complex or more specialized than with traditional civil litigation as well. Many commercial litigation cases are filed federally rather than in state court, and some are class action lawsuits or multi-district lawsuits depending on the number of involved parties or the types of parties involved. Looking towards the history of corporate litigation in Nepal, it began in 1993 B.S. with the enactments of Nepal company kanoon during the Rana Regime. Till 1993 Nepal was not actively involved in the international arena. Company law of England has influenced India and Nepal being a neighboring country, has that impact. However, looking at the development of Nepal’s company law it is found differ from the company law of England. There is no history in Nepal of establishing a company by making a special law for the purpose of providing a monopoly in the trade of a particular sector or a particular commodity. But there are examples in Nepal where organized organizations have been established to operate air transport services.
Due to the nature of commercial litigation, it is common for such cases to be more expensive. This is because certain steps of the litigation process, namely discovery and the use of forensic experts, tend to be more extensive in a commercial dispute than in non-commercial litigation matters. The distinction between civil litigation and the definition of a commercial dispute is party identification. However, as noted before, certain areas of law are inherent to the commercial litigation practice area based on the parties involved such as those listed above.
With new and emerging technologies, the law has adapted, and plaintiffs have found new causes to litigate such as patent infringement and breach of online contracts. High-tech companies are growing significantly and playing a larger role in the growth of the commercial litigation practice area. These are the companies most likely to engage in high-risk and high-dollar litigation because of the nature of the subject matter. Often it is the intellectual property, trade secrets, or big-dollar contracts of the company at stake when engaging in these lawsuits. While there may be changes in client focuses in the coming years, and while civil and commercial litigation firms may be expected to evolve with emerging technologies, what is clear is that the commercial litigation practice area is one that is going to grow rather than shrink.
Thus, there is no simple commercial dispute, but they are unfortunately a part of reality. When faced with a commercial dispute, especially in its earliest stages, the best course of action is to look into a commercial litigation attorney who can help settle the issue before it becomes more complex or costly.
A large amount of civil and commercial litigation settles out of court before trial and the key to a cost- and time-effective settlement is having the right commercial litigation attorney in your corner i.e Prime Law Associates 

To consult or get legal advice from our expert  about Commercial Litigation  in Nepal/  Corporate Litigation in Nepal; Contact us at 977-01-4102849/977-9851059026, Prime Law Associates, Anamnagar, Kathmandu,, www.
This article is for informational purposes only and shall not be construed as legal advice, advertisement, personal communication, solicitation, or inducement of any sort from the firm or any of its members. The law office shall not be liable for consequences arising out of any action undertaken by any person relying on the information provided herein.


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