Consumer Justice in Action: Landmark Judgments from Nepal’s First Consumer Court

Following up on our earlier insights on cases in Nepal’s First Consumer Court, we take a deeper look at how the Court has continued to reinforce consumer rights through a series of significant judgments. These rulings cover a wide range of issues, including medical negligence, faulty cosmetic procedures, misleading warranties, and instances of unfair pricing. Each decision highlights the growing emphasis on accountability, transparency, and ethical business practices in Nepal’s evolving consumer protection landscape.

Position as of 14 July 2025.

Sabitri Khatri Thapa vs. Swastik Silver Palace

Decision No. 3 | Case No. 081-CP-0002

• Facts: On 2081/11/25 the plaintiff purchased a silver idol of 13.3 grams from Swastik Silver Palace, Kathmandu, for NPR 4,600. Per the Federation of Gold and Silver Dealers’ prevailing rate, the value of the goods sold was only NPR 2,263.42. The plaintiff sought a refund within seven days under Section 14(1) of the Consumer Protection Act, 2075 (2019). The shop refunded only NPR 2,225, deducting NPR 2,375 without justification. The plaintiff claimed NPR 35,700 for financial loss, mental distress and related expenses.
• Issue: Whether the seller’s refusal to fully refund the purchase within the statutory seven-day period constitutes a violation of the CPA, entitling the plaintiff to compensation for financial loss and mental suffering.
• Decision: The refund deduction was declared unjustified and in violation of Section 14(1). No exception under Section 14(4) applied. The seller’s conduct was deemed unethical and unlawful. NPR 20,000 awarded under Section 51 for financial, mental and physical hardship.

Advocate Basanta Gautam vs. Om Hospital

Decision No. 4 | Case No. 081-CP-0001

• Facts: A 98-year-old patient, Harihar Prasad Gautam, suffered a hip fracture. Om Hospital discharged him within hours without proper orthopaedic care. No specialist consultation or proper treatment was provided despite X-ray evidence. His condition worsened and he died on 2081/11/03, almost a month after the injury. Expert testimony linked the death to hospital negligence.
• Issue: Whether the hospital’s failure to provide adequate medical treatment, referral and proper care amounted to gross medical negligence under the CPA.
• Decision: The hospital and doctors were found negligent, and their conduct directly led to deterioration and death. Section 51 was invoked for physical, emotional and financial harm. NPR 56,81,000 awarded, comprising NPR 50,70,000 from Om Hospital and NPR 3,05,500 from each of two doctors. A landmark decision for medical accountability.

Nanikaji Khadka vs. G.R.S. Two Wheelers and MAW

Decision No. 5 | Case No. 081-CP-0005

• Facts: The plaintiff purchased a Yamaha FZ-X BS6 motorcycle for NPR 4,45,900 with an 18-month warranty. The motorcycle developed multiple defects after sale, including battery failure and smoke. The VAT invoice falsely stated 2024 AD as the manufacturing year, while official records confirmed 2022 AD. Warranty services were denied and the plaintiff bore the repair costs.
• Issue: Whether the defendants violated consumer protection law by selling a misrepresented product and breaching warranty obligations.
• Decision: The seller misrepresented the year of production and denied rightful warranty, violating Article 44 of the Constitution and Sections 6(d), 11(e), 50, 51 and 52 of the CPA. Warranty is a legally enforceable obligation. NPR 3,93,000 awarded for financial loss, hardship and inconvenience, plus NPR 1,000 in court costs.

Varsha Bhandari vs. Grande Hospital and Dr. Tripathi

Decision No. 6 | Case No. 081-CP-0004

• Facts: The plaintiff underwent thigh liposuction performed by Dr. Sanjiv Tripathi at Grande City Hospital. Post-surgery complications caused permanent deformities and scarring. No informed consent or risk disclosure was documented. The plaintiff faced significant physical, psychological and professional impact.
• Issue: Whether the absence of informed consent, risk disclosure and failure to meet medical standards in cosmetic surgery constitutes negligence under the CPA.
• Decision: Both doctor and hospital breached medical standards, and the failure of informed consent violated patient rights. Sections 51 and 52 were invoked. NPR 57,19,000 awarded, apportioned 70 per cent to Dr. Tripathi (NPR 40,03,300) and 30 per cent to Grande Hospital (NPR 17,15,700).

Gautam vs. Himal Hospital

Decision No. 7

• Facts: The plaintiff’s child, aged two years and four months, presented with Lower Respiratory Tract Infection symptoms at Himal Hospital. The doctor failed to conduct necessary diagnostics including an X-ray, and prescribed medicines without confirming the diagnosis. The delay led to severe oxygen deficiency and the child died on 2079/10/26.
• Issue: Whether the failure to provide timely diagnosis, conduct necessary tests and ensure medical intervention amounted to medical negligence justifying compensation under the CPA.
• Decision: The hospital and doctor breached their duty of care. Sections 51 and 52 were invoked for failure in statutory obligation. NPR 1,45,44,100 awarded, apportioned 70 per cent to Himal Hospital (NPR 1,00,18,087) and 30 per cent to Dr. Jaydev Yadav (NPR 43,63,230), plus NPR 1,000 in court costs.

Awards at a glance

The judicial trend these decisions establish

Read the original briefing

The full briefing, including the original formatting and citations, is reproduced below and available to download.