Supreme Court Issues Stay Order Against Privatization of NAC

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Supreme Court Issues Stay Order Against Privatization of NAC

July 26: The Supreme Court has issued an interlocutory order to put on hold all the works related to the privatization of the state-owned Nepal Airlines Corporation (NAC).

Responding to a writ petition filed by advocate Atish Karki, a single bench of Supreme Court Justice Kumar Regmi issued an interim order on Sunday (July 26) to halt the process of privatization of the NAC.

An interlocutory order has been issued in the name of the defendants to keep the status quo and not to take any decision regarding privatization of the Nepal Airlines Corporation before an interim order is issued after hearing both sides, the order reads.

The court is of the view that it would be appropriate to conclude the case after hearing both the parties on August 9.

The defendants have been asked to appear in the court as per Rule 49 (2) (c) of the Rules of Procedure of the Supreme Court 2074 BS. Similarly, the bench has also issued a show-cause order to the stakeholders. NAC has to submit clarification for the privatization of the airline company within 15 days.

Employees of the Nepal Airlines Corporation have been protesting against the privatization of the corporation. Nepal Airlines Corporation United Trade Union has demanded the resignation of Dim Prakash Poudel, general manager of NAC. 

The trade union has alleged Poudel that he did not discuss this issue with the stakeholders even after preparing a draft to privatize the government-owned corporation.

A meeting of the Board of Directors of NAC held on July 25 had decided to send the draft prepared to transform the Nepal Airlines Corporation into a 'public' company to the Ministry of Culture, Tourism and Civil Aviation. Meanwhile, the Ministry of Culture, Tourism, and Civil Aviation has said there is no plan to privatize the Nepal Airlines Corporation. A few days ago, the ministry issued a formal statement saying that there was no discussion on privatizing the corporation or converting it into a private company.

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