Compensation Act, 2019 (1963)


Published: 1963

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Compensation Act, 2019 (1963)
Date of Authentication and Publication
2019.12.30(12 April 1963)
Amendment:
11. Republic Strengthening and Some Nepal
Laws Amendment Act, 2066(2010) 2066.10.7(21 Jan. 2010)

Act Number 56 of the year 2019 (1963)
…………………2
An Act Made To Provide For Compensation
Preamble: Whereas, it is expedient to provide compensation for property
acquired or to be acquired by the Government of Nepal in accordance with the
Nepal laws;
Now, therefore, His Majesty King Mahendra Bir Bikram Shah Dev has
made this Act pursuant to Article 93 of the Constitution of Nepal
1. Short title and commencement: (1) This Act may be called as
“Compensation Act, 2019 (1963)”.
(2) It shall come into force immediately.
2. Definitions: Unless the subject or the context otherwise requires, in
this Act:
(a) "Property" means any property acquired or to be acquired in
accordance with the prevailing Nepal laws.
(b) "Owner" means a person who has got a stock or the right to the
stock.
1 This Act came into force on 15 Jestha 2065(28 May 2008).
2 Deleted by Republic Strengthening and Some Nepal Laws Amendment Act, 2066(2010).

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(c) "Stock" means the stock issued under this Act.
(d) "Bank" means the Nepal Rastra Bank.
(e) "Prescribed" or "as prescribed" means prescribed or as prescribed
in the Rules framed under this Act.
3. Acquisition of any property: (1) The Government of Nepal may, if it
considers necessary to acquire any property for the public interest,
acquire that property.
(2) The authority specified by the Government of Nepal may
determine the figure of the compensation of the property acquired
pursuant to Sub-section (1).
(3) A person who is not satisfied with the figure of compensation
determined pursuant to Sub-section (2) may make a complaint to the
Government of Nepal within Thirty Five days after the date of receipt of
the notice of that determination, and the decision made by the
Government of Nepal shall be final.
(4) Notwithstanding anything contained above, if the
compensation of any property is specified by the prevailing law, the
compensation may be determined accordingly and provided under this
Act.
4. Provision of compensation: The compensation of any property
abolished, acquired or to be obtained pursuant to any Nepal law may be
provided in the form of stock under this Act.
Provide that, if the Government of Nepal so wishes,
compensation may be provided even in cash.
5. Power to issue stock: The Government of Nepal or Bank may, as per
necessity, issue stock in the prescribed formant for compensation to be
provided under this Act.

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6. Payment of principal and interest of stock: Notwithstanding
anything contained in the prevailing Nepal laws, the Bank, on behalf of
the Government of Nepal, shall, subject to Section 7, make payment of
the principal and interest as mentioned in the stock to the owner or the
nominee of the owner.
7. Payment period and rate of interest: (1) The Government of Nepal
may, by publishing a notice in the Nepal Gazette, specify the period of
payment of stock and the rate of interest in such a manner not to exceed
the upper limit specified as follows:
(a) Payment period: Twenty years,
(b) The rate of interest: Five percent.
(2) Notwithstanding anything contained in Sub-section (1), the
Government of Nepal may, if it so wishes, provide the amount of
interest with effect from the date of abolition or acquisition of any
property.
8. Bank to be as trustee of stock: (1) The Bank may be the trustee of
the stock given pursuant to this Act.
(2) The Bank shall register the name of owner in its account and
give a slip thereof as prescribed to him or her.
(3) If the owner so wishes, the Bank may take custody of his or
her stock and may make payment of interest as prescribed not exceeding
Two times a year.
9. Stock to be chargeable: The amount of payment of the stock given
under this Act shall be chargeable on the consolidated fund.
10. Power to establish debt relief fund: For the purposes of this Act,
the Government of Nepal may establish a debt relief fund.
11. Action relating to stock: Only the Bank may take action relating to
the stock issued pursuant to this Act, and in taking action, it shall, from

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time to time, give to the Government of Nepal a report on the economic
situation of stock, in the format approved by the Government of Nepal.
12. Transmission of stock: If the owner makes a request in writing for
the transmission of stock, the Bank may inquire into all matters and
effect transmission by collecting the fees as specified by it.
13. In the event of dispute as to the owner of any stock: If any
dispute arises upon having any kind of doubt as to the owner of any
stock, it shall be as decided by the court.
14. Amendment to the Birta Abolition Act, 2016(1959): The
following amendments have been made to the Birta Abolition Act, 2016
(1959):
(a) The words "as per the manner set forth in the said Schedule"
contained in Sub-section (1) of Section 9 are, hereby, deleted.
(b) The sentences contained in "manner of compensation" of the
existing Schedule have been deleted.
15. Power to frame Rules: The Government of Nepal may, on the advice
of the Bank, frame Rules to implement the objectives of this Act.