KATHMANDU: The Supreme Court has issued a short-term interim order directing Himalayan Life Insurance Limited not to implement its notice calling for applications for the appointment of a new Chief Executive Officer (CEO).
A single bench of Justice Tek Prasad Dhungana issued the order while hearing a writ petition filed by the company’s current CEO, Kapil Kumar Dahal.
Dahal was appointed CEO of Himalayan Life Insurance for a four-year term on October 30, 2025.
However, he was automatically suspended after being taken into custody for investigation in connection with an alleged offence under the Securities Act, 2063. He was later released on bail on August 7, 2026, following a Kathmandu District Court order and is currently appearing before the court as required.
The writ petition has raised legal questions over whether Dahal’s suspension should continue following his release on bail and whether the company can treat the CEO position as vacant and begin a new appointment process without formally removing him from office through the required legal procedures.
The Supreme Court has issued a show-cause order to the Nepal Insurance Authority and other defendants, directing them to submit written responses explaining why the order sought by Dahal should not be issued within 15 days, excluding the time required for service of the notice.
Given the serious legal questions involved, the court said it was appropriate to hear both sides before deciding whether to issue a longer-term interim order.
The court has scheduled a hearing on the interim order for August 31.
Until the matter is discussed and resolved, the court has ordered Himalayan Life Insurance not to implement its notice published on Bhadra 3, 2083, inviting applications for the appointment of a new CEO.
The order was issued under Rule 49(2) of the Supreme Court Rules, 2074, keeping the CEO appointment process in its existing state until further orders.
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