Part-6

Provisions Relating to Private International Law

692. Provisions of this Part to apply: (1) The provisions of this Part
shall apply to any matter relating to private legal relationship
involving a foreigner, foreign object or any act done in a foreign
country.

(2) Without prejudice to the generality of sub-section (1),

the provisions of this sub-section shall apply, in particular, to the
following matters:

(a) Legal status of a foreigner and his or her capacity,

(b) Matters relating to matrimonial relationship, paternal

and maternal and other family relationship or partition
or succession, with at least one of the related parties
whereof being a foreigner, or the place of execution of
any act or action related thereto being situated outside
Nepal,

(c) Matter relating to a property situated in a foreign

country, with at least one of the concerned parties
being a foreigner,

(d) Matter relating to a contractual or non-contractual right

or obligation, with at least one party being a foreigner,

(e) Matter relating to a contract made in a foreign country.

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 Explanation: For the purposes of this Part, the term
“foreigner” means a foreign natural person or body corporate, and
also includes a foreign state.

693. Legal capacity of foreigner to be determined: (1) The legal

capacity of any foreign natural person shall be determined
according to the law of the country of his or her nationality.

(2) If the nationality of a foreign natural person cannot be

ascertained pursuant to sub-section (1), his or her capacity shall be
determined according to the law of the country of his or her
habitual residence, and even if such residence cannot be
ascertained, according to the law of the country where he or she is
residing for the time being.

(3) The legal capacity or status of a body corporate shall

be determined according to the law of the country where it is
registered, if the country of registration cannot be so ascertained,
according to the law of the country where the headquarters of such
body is located, and if even such a country cannot be ascertained,
according to the law of the country where the place of transaction
of such a body is located.

694. Presumption of disappearance or death of foreigner: (1) If a

presumption of the disappearance or death of a foreigner has to be
made, the matter shall be determined according to the law of the
country of his or her nationality.

(2) If the nationality of a foreigner cannot be ascertained

pursuant to sub-section (1), it shall be determined according to the

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 law of the country of his or her habitual residence, and even if such
residence cannot be ascertained, according to the law of the country
of his or her residence immediately before making presumption of
his or her disappearance or death.

695. Successor to be determined according to foreign law: While

determining the successor to a foreigner residing in Nepal when his
or her property is open for succession, the successor shall be
determined according to the law of the country of his or her
nationality, if such country cannot be determined, according to the
law of the country of his or her habitual residence, and if even such
residence cannot be ascertained, according to the law of the country
where he or she is residing for the time being.

696. Determination of succession of deceased: (1) If succession is

open because of the death of any foreigner in Nepal and it is
therefore necessary to determine his or her successor to the property
situated in Nepal and the order of preference thereof, it shall be
determined according to the law of the country of his or her
nationality at the time of his or her death.

(2) If the law referred to in sub-section (1) cannot be

ascertained, it shall be determined according to the law of the
country of his or her habitual residence at the time of his or her
death, and if even such country cannot be ascertained, according to
the law of Nepal.

697. Determination of the nature of corporate body: Question as

regards whether a company, foundation or other corporate body is

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 public or private shall be determined according to the law of the
country of incorporation of such a company, foundation or body,
and if such law cannot be ascertained, according to the law of the
country where the registered office or headquarters of such a
company, foundation or corporate body is situated.

698. Regulation of property: (1) Succession to a movable property

shall be governed by the law of the country of habitual residence of
the deceased at the time of his or her death.

(2) Succession to an immovable property shall be

governed by the law of the country where such property is situated.

699. Citizen of Nepal to follow law of Nepal while concluding

marriage abroad: (1) A citizen of Nepal shall, while concluding a
marriage in a foreign country, comply with such competency,
qualification and conditions for marriage as specified by the law of
Nepal.

(2) The formalities to be fulfilled by a citizen of Nepal

while concluding a marriage in a foreign country shall be governed
by the law of the country where the marriage is concluded.

Provided that while concluding a marriage at an

embassy or consulate general of Nepal situated in a foreign country,
the formalities referred to in the law of Nepal shall be followed.

(3) A marriage concluded in contravention of sub-sections

(1) and (2) shall not be recognized in Nepal.

700. Foreigner to follow law of his or her country while concluding

marriage in Nepal: (1) While concluding a marriage between

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 foreigners or between a foreigner and a citizen of Nepal in Nepal,
each person entering into marriage shall comply with the capacity,
qualification and condition as specified by the law of the respective
country of his or her nationality.

(2) The formalities to be fulfilled by the foreigners while

concluding marriage in Nepal shall be governed by the law of Nepal.

Provided that while concluding a marriage at a foreign

embassy or consulate general situated in Nepal, the formalities
referred to in the law of the concerned country shall be fulfilled.

(3) A marriage concluded in contravention of sub-sections

(1) and (2) shall not be recognized in Nepal.

701. Consequence of marriage to be according to law of one’s

country: (1) The matrimonial relationship between the couple after
the marriage and the consequence of marriage shall be determined
according to the law of the country of their nationality if both
spouses have the same nationality, and if the country of their
nationality is not the same, according to the law of the country of
their habitual residence and if even such a country is not the same,
according to the law of the country of their residence for the time
being.

(2) If the consequence of marriage cannot be determined

pursuant to sub-section (1), it shall be determined according to the
law of the country of their marriage.

702. Paternal authority to be governed by law of the country of

nationality: (1) The relationship between father, mother and son,

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 daughter including paternal authority shall be governed by the law
of the country of nationality of the son or daughter, as the case may
be.

(2) If the law referred to in sub-section (1) is not

ascertained, it shall be governed by the law of the country of
habitual residence of the father, mother and, if even such country
cannot be ascertained, by the law of the country of their residence
for the time being.

703. To be governed by the law of the country of nationality of

adoptive person: Subsequent to the adoption of a son or daughter,
the relationship between the adoptive person and the adopted son or
daughter shall be governed by the law of the country of nationality
of the adoptive person, and if such law cannot be ascertained, by
the law of the country of habitual residence of the adoptive person,
and if even such law cannot be ascertained, by the law of the
country where the adoptive parents are habitually spending marital
life.

704. Determination of guardianship or curatorship: (1) The

guardianship or curatorship of an incompetent or quasi-competent
person shall be determined according to the law of the country of
nationality of that person.

(2) If the country referred to in sub-section (1) cannot be

ascertained, it shall be determined according to the law of the
country of his or her habitual residence, and if even such country

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 cannot be ascertained, according to the law of the country of his or
her habitual residence for the time being.

(3) The relationship between the guardian or curator and

the person under his or her guardianship or curatorship shall be
determined according to the law of the country of the guardian or
curator or the law of the country where the guardian or curator is
appointed as such.

Provided that if the habitual residence of the person who is

under guardianship or curatorship is in Nepal, it shall be determined
according to the law of Nepal.

705. To be determined according to the law of residence: (1) The

matter of separation of bread and board shall be governed by the
law of the country of habitual residence of the married couple.

(2) If, in governing the matter pursuant to sub-section (1),

the country of habitual residence of the couple is not the same, it
shall be governed by the law of the last country of their habitual
residence, and if even such a country cannot be ascertained, by the
law of the court where the case of alimony is sub judice.

706. Divorce effected abroad to be recognized: If a divorce is effected

between the citizens of Nepal or between a citizen of Nepal and a
foreigner in a foreign country, such a divorce shall, if effected in
accordance with the law of that country, be recognized and
enforced in Nepal in accordance with the law of Nepal.

707. Content of ownership to be determined according to law of

country where property is situated: (1) The content of ownership

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 or possession of any property shall be determined according to the
law of the country where such property is situated.

(2) A question as regards the maintenance or termination

of ownership in an immovable property shall be determined
according to the law of the country where such property is situated.

708. Goods to be governed by law of destination: Any goods in transit

in the course of carriage shall be governed by the law of their
destination.

709. Governing law of contract to be as determined by parties: (1)

The governing law of any contract shall be as determined in the
contract by its parties.

(2) If no law is determined pursuant to sub-section (1),

such a contract shall be governed by the law of the country of its
performance, and if even such a country cannot be ascertained, by
the law of the country where it was concluded.

Provided that a contract concluded in Nepal shall be

governed by the law of Nepal.

710. Deed executed abroad to be recognized: The validity of any

contract or deed executed outside Nepal shall be determined
according to the law of the country where it has been executed, and
such a contract or deed shall be deemed lawful and recognized in
Nepal if it has been duly executed in accordance with the law of
that country.

711. To be governed by law of nationality of donor: (1) The matter

concerning validity of a donation or gift shall be governed by the

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 law of the country of donor's nationality existing when the donation
or gift was made.

(2) If the formalities are completed according to the law of

the country where a donation or gift is given, the donation or gift
shall be deemed to be duly given.

712. Determination of liability for tort: (1) While determining the

liability for an act which, according to law constitutes a tort,
involving a foreigner, foreign object or act done in a foreign
country, it shall be determined according to the law of the country
where such an act has been taken place.

(2) If any act referred to in sub-section (1) originates in

one country and results in consequence in another country, the
liability shall be determined according to the law of the country
where the consequence so results.

(3) If the liability cannot be determined pursuant to sub-

section (2), it shall be determined according to the law of the
country where the tortious act has been committed.

713. Liability for quasi-contract or unjust enrichment: The liability

for a quasi-contract or unjust enrichment shall be determined
according to the law of the country where such an act has been
done.

714. Other matters to be determined according to recognized

principles of private international law: (1) While determining
any matter that is not dealt with in this Part involving a foreigner,
foreign object or act done in a foreign country, such a matter shall

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 be determined according to the law of Nepal, if Law of Nepal
provides separate provision in relation to that matter, and failing
such separate provision, according to the recognized principles of
private international law.

(2) Notwithstanding anything contained in sub-section (1),

if all parties of the relevant matter so agree, the matter referred to in
sub-section (1) shall be determined according to the law of Nepal.

715. In case of double nationality, law of country of habitual

residence to be applied: (1) If this Part contains a provision to the
effect that any matter is determined according to the law of the
country of nationality and a person is having nationality of two or
more countries at the same time, his or her nationality shall be
determined according to the law of the county of his or her
nationality, where he or she habitually resides.

(2) If such a matter cannot be determined according to the

law of the country referred to in sub-section (1), it shall be
determined according to the law of the country of his or her
nationality, to which he or she has most closest connection.

Provided that in the case of a person who holds also the

citizenship of Nepal or who has habitual residence in Nepal or is a
non-resident Nepali citizen, it shall be determined according to the
law of Nepal.

(3) If the matter referred to in sub-section (1) concerns a

refugee or stateless person, it shall be determined according to the
law of the country of his or her habitual residence, and if even such

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 a law cannot be determined, according to the law of the country of
his or her residence for the time being.

716. Power to give permission for trial of case by foreign court: (1) If
both parties to a case which involves a foreign party and is sub
judice in a court of Nepal make a joint petition to the court,
specifying the reason that it is appropriate and practicable for that
case to be resolved by a court of the country of residence of such
party and the matter is found reasonable upon examination of the
petition, the court may give permission for the proceedings of the
case by the foreign court as demanded by the parties to such a case.

(2) Once the court has given permission for the proceeding
of a case by a foreign court pursuant to sub-section (1), no
proceeding shall be made again by a court of Nepal in the same
matter.

717. Power to adjourn case sub judice in court of Nepal: If any case
between the parties is sub judice in a court of Nepal and a case is
running also in a foreign court between such parties in the same
matter, and the parties, having considered that the case pending in
the court of Nepal is likely to be directly affected by a judgment to
be made in the case between them running in the foreign court,
apply for the adjournment of the case running in Nepal, the court
may adjourn such a case until their case pending in the foreign
court is adjudged.

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718. Court of Nepal to have jurisdiction: A court of Nepal shall have
jurisdiction to adjudicate the proceedings and settle any disputes
arising in connection with the following matters:

(a) A matter between the foreigners who reside in Nepal or

between a foreigner and a citizen of Nepal, that is
governed by this Act or other law,

(b) A matter of a case of which a foreigner residing in Nepal

is a defendant,

(c) A matter as regards the succession of a foreigner who

resided in Nepal and had property in Nepal at the time of
his or her death,

(d) A matter concerning payment to be made in Nepal on a

financial transaction or dealing made abroad between a
citizen of Nepal and a foreigner,

(e) A matter between foreigners or between a foreigner and a

citizen of Nepal, concerning a property situated in Nepal,

(f) A matter concerning a contract concluded in or to be

performed in Nepal between foreigners or to which at
least one party is a citizen or body corporate of Nepal,

(g) A matter concerning a tort, quasi-contract or unjust

enrichment committed outside Nepal, where both parties
are citizens of Nepal or foreigners who have habitual
residence in Nepal,

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 (h) A matter to be adjudicated by a court of Nepal under sub-
section (2) of Section 699.

719. Other matters concerning a case may also be settled by court of

Nepal: If it appears that any other matter related to any case
involving a foreigner instituted in a court of Nepal under its
jurisdiction to settle the main dispute should also be settled, the
court may assume its jurisdiction over that matter also and settle it
accordingly.

720. Treaty, if any, to apply: If any treaty to which Nepal is a party

contains a separate provision on any matter set forth in this Part,
nothing contained in this Part shall affect such provision.

721. Provisions of this Part not to apply: (1) Notwithstanding anything

contained elsewhere in this Part, if the application of any legal
provision under this Part in Nepal would be contrary to public
order, the provision contained in this Part shall not be applicable in
such circumstance.

(2) If there arises a circumstance referred to in sub-section

(1), the matters contained in this Part shall be governed by other
linking criteria, and if such criteria cannot be determined, by the
law of Nepal.

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