Proposal to Resolve Contract, Land Acquisition and Compensation Cases Within 90 Days

Kathmandu / Sept. 12: The government is preparing legislation requiring cases related to infrastructure projects to be resolved within 90 days. For this purpose, an Infrastructure Tribunal Act is being drafted.

According to the Ministry of Law, Justice and Parliamentary Affairs, cases related to contracts, land acquisition and compensation determination for infrastructure development are often filed in courts and take a long time to reach a final verdict, particularly after being taken to higher courts.

To address this problem, the ministry is preparing legislation to establish a tribunal to hear cases related to infrastructure development. The ministry has prepared the draft “Bill to Make Provisions Relating to the Establishment of the Infrastructure Tribunal” and published it for public feedback.

Section 10 of the bill provides that such cases must be resolved within 90 days from the date of filing. The provision has been framed as a mandatory requirement, using the wording that cases “must be resolved.”

According to Section 12, anyone dissatisfied with a tribunal decision may appeal to the Supreme Court within 30 days. The proposed bill also provides that such appeals must be resolved within 90 days.

According to the ministry, once the proposed provisions are incorporated into law and implemented, they will help remove obstacles caused when cases related to contracts, land acquisition and compensation remain pending in courts for long periods and move through higher levels before reaching a final resolution.

The bill itself also explains the rationale for establishing a separate body to hear cases related to infrastructure projects.

The bill states that writ petitions concerning such matters often take a long time to resolve, resulting in hundreds of projects across the country remaining stalled for years because of pending litigation. It therefore proposes the establishment of an Infrastructure Tribunal with specialized jurisdiction and the involvement of experts to resolve such cases quickly.

The bill defines infrastructure development in its definition section. According to the proposed definition, infrastructure development includes the construction, repair and maintenance of physical structures such as roads, hydropower projects and electricity transmission lines, airports, information technology infrastructure, urban development and drinking-water systems.

In other words, if a case is filed concerning projects in these areas, the proposed Infrastructure Tribunal will hear it. Cases involving contracts, land acquisition, compensation and other related matters are proposed to be resolved within 90 days of filing.

Section 3 of the proposed bill contains provisions relating to the establishment and formation of the tribunal.

The bill will be submitted to the President after being passed by the Federal Parliament. Once the President authenticates it, it will become an Act and come into implementation. After the Act comes into force, the Government of Nepal will establish an Infrastructure Tribunal by publishing a notice in the Nepal Gazette.

In consultation with the Judicial Council, the Government of Nepal’s Cabinet will designate one judge from among High Court judges to serve as the chairperson.

One expert member will be appointed by the Government of Nepal through the Cabinet from among individuals who hold at least a master’s degree in economics, management, commercial law or finance and have at least 15 years of work experience in the field of public procurement.

Another expert member will be appointed from among individuals who hold at least a master’s degree in engineering and have at least 15 years of experience in project management.

According to the proposed bill, the tribunal will be based in Kathmandu Valley and will have jurisdiction throughout Nepal.

The government may also establish additional tribunals by publishing a notice in the Nepal Gazette, with the headquarters and territorial jurisdiction of each additional tribunal specified in the notice.

Under the bill, the tribunal will also hear disputes between joint-venture partners involved in public procurement and infrastructure development, as well as disputes concerning bid performance guarantees and advance-payment guarantees.

Disputes relating to contracts for public infrastructure construction, public-private partnership (PPP) projects, personnel associated with construction contractors and consultants, suppliers, and locally affected individuals, institutions or communities have also been placed under the tribunal’s jurisdiction.

The tribunal will also hear disputes concerning the methods and locations for extracting construction materials, as well as disputes regarding the responsibilities of construction contractors for maintenance and operation after completion of a project.

Disputes concerning the right-of-way of projects, land acquisition and land-use rights, contractor selection in contracts and public procurement, termination of contracts, and the blacklisting of construction contractors or suppliers have also been proposed to fall under the tribunal’s jurisdiction.

If the bill is enacted into law, a project will not be allowed to be stopped merely because a case has been filed.

Except where a court or the tribunal issues an otherwise contrary order, public infrastructure construction work cannot be halted solely on the basis that a case has been filed.

The government believes this provision will prevent construction processes from being disrupted after cases are filed in courts or the tribunal against infrastructure projects. However, the bill also provides that the tribunal may issue an interim order to halt a project if it considers such an order necessary.