Where no other law is chosen, Indian courts apply the Indian Contract Act 1872 to agreements with Indian companies. Because a Nepali judgment cannot be executed directly in India, an arbitration clause with a clear seat and institution is usually the best protection. Both countries are parties to the New York Convention, so an award can be enforced in India under Part II of the Arbitration Act.
- Document route
- Nepali notary, Ministry of Foreign Affairs attestation, then Indian Embassy attestation
- Time difference
- IST is 15 minutes behind Nepal all year
- Core law
- Indian Contract Act 1872
- Foreign awards
- Part II, Arbitration Act 1996
Commercial Contracts from Nepal: how it works
We draft and review supply, distribution, agency, construction and engineering contracts, and project agreements for hydropower and infrastructure. We focus on payment security, price escalation, delays and liquidated damages, customs and transit responsibilities, and termination.
Where a dispute is brewing, we review the contract and correspondence and advise on notices, negotiation, mediation and arbitration. We also check that the contract is properly stamped in India if it will be relied on there.
What clients in Nepal should know
- Use a written contract even with long-standing partners; oral terms are hard to prove.
- Specify the currency and how exchange rate changes are handled.
- Choose a neutral or Indian seat of arbitration and name an institution.
Step by step from Nepal
Video consultation
A call at a time that suits Nepal, after we have read your documents.
Documents signed in Nepal
Nepali notary, Ministry of Foreign Affairs attestation, then Indian Embassy attestation
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Nepal where needed.
The full guide
This page covers what changes when you are in Nepal. For the law, the documents and the step-by-step procedure, read our main page on Commercial Contracts, or see all services for clients in Nepal and the Doing Business in India practice area.
Questions from clients in Nepal
Should our contract be under Nepali or Indian law?
Either can work. The dispute clause is what decides how easily you can enforce.
Can an award made in Kathmandu be enforced in India?
Yes, generally, as a New York Convention award.
Can you review a contract drafted by the Indian party?
Yes. We mark up the risky clauses and explain them in plain language.