In Nepal, can I enforce a binding arbitration award if the other party refuses to pay?

Before seeking enforcement in Nepal, the arbitral award must be final and binding in the country where it was issued. The court will check whether:
- The arbitration was conducted according to the arbitration agreement.
- Both parties were properly notified of the proceedings.
- The tribunal decided only on matters within the scope of the arbitration agreement.
- The award is final and enforceable under the law of the seat of arbitration.
These are key conditions under Nepal’s arbitration framework. If it is the foreign award, the winning party must apply to the High Court. If the court finds the award enforceable, it will recognize the award and forward the matter to the competent District Court for execution.

Yes, you can enforce a binding arbitration award in Nepal if the other party refuses to pay. Under the Arbitration Act, the losing party usually has about 45 days to comply voluntarily after receiving the award, and they can try to challenge it in the High Court within 35 days on limited grounds (like lack of proper notice or an invalid arbitration agreement). If they still don’t pay, you can apply to the relevant District Court to enforce the award, and the court can treat it much like its own judgment—meaning it can order payment or even attach assets to recover the amount. If the arbitration award was issued outside Nepal, it generally needs to be recognized by the High Court first under the New York Convention before it goes to the District Court for execution.