KATHMANDU: The government has proposed establishing a Commercial Sector Mediation Promotion Committee to resolve business and commercial disputes through mediation and reduce prolonged court proceedings.

The Ministry of Law, Justice and Parliamentary Affairs has registered a bill to amend the Mediation Act at the House of Representatives, proposing permanent mediation mechanisms at both federal and provincial levels.

The proposed federal committee will include the presidents of the Nepal Bankers’ Association, Federation of Nepalese Chambers of Commerce and Industry, Nepal Chamber of Commerce and Confederation of Nepalese Industries. Two members nominated by the Mediation Council, including at least one woman, will also represent professional associations from the production, construction and distribution sectors. Their term will be two years.

The committee coordinator will be a member designated by the chairperson of the Mediation Council. The council is chaired by a Supreme Court justice and includes senior government officials, the deputy attorney general and the secretary-general of the Nepal Bar Association, among others.

The bill also proposes provincial mediation coordination committees for commercial disputes. The Chief Justice, in consultation with the Judicial Council, would appoint a High Court judge as the coordinator.

The provincial committees would coordinate, monitor, evaluate and facilitate mediation of commercial disputes within their respective provinces. Their proposed members include the secretary of the provincial ministry responsible for law, a joint attorney at the relevant government attorney’s office, the coordinator of the judicial committee of the concerned local government and the chair of the relevant High Court Bar Unit.

A female representative from an organization working in the mediation sector would also be included.

To make mediation faster and technology-friendly, the bill proposes allowing parties to participate in mediation discussions through video conferencing.

The bill also proposes establishing community mediation centers with support from local governments. Such centers could maintain separate funds sourced from federal and provincial grants, local government contributions and support from individuals or organizations.

The proposed framework is aimed at reducing lengthy commercial litigation and strengthening alternative dispute resolution with greater participation from the private sector.