The Supreme Court has ruled in favor of Nepal Finance in a legal dispute over a loan-related collateral case that had been under judicial review since 2075 B.S.
On Shrawan 15 (Thursday), a joint bench of Justices Tek Prasad Dhungana and Bal Krishna Dhakal overturned an earlier verdict by the High Court, siding with Nepal Finance Limited. The case originated in 2067 B.S., when the then Lalitpur Finance (now merged into Nepal Finance) disbursed a loan of NPR 13 crore to an individual bearing the surname Bista. As collateral, land registered in the name of a person with the surname Subedi — listed in the records of the Kathmandu District Court — was pledged to secure the loan.
When Bista failed to repay the loan, including both principal and interest, the finance company began the process of auctioning the collateral. However, Subedi filed a legal complaint at the Kathmandu District Court, arguing that the auction should be halted due to the absence of a finalized dristibandhak likhat (a formal legal binding agreement for the collateral). Despite this claim, the District Court ruled in favor of Lalitpur Finance on 2073/02/17.
Unhappy with the ruling, Subedi appealed to the High Court Patan, which issued a verdict in his favor. In response, Nepal Finance escalated the matter to the Supreme Court, requesting a review of the High Court’s decision. After years of judicial deliberation, the Supreme Court has now reversed the High Court’s ruling, affirming Nepal Finance’s legal position in the case.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
