Union Dissolution Case: Supreme Court Summons Government for Critical May Hearings

The most significant ruling came from a Constitutional Bench led by Acting Chief Justice Sapana Pradhan Malla. In a majority decision, the bench stayed the government’s move to dissolve trade unions within state-run institutions. This decision follows a writ petition filed by Bhawani Dahal, chairperson of the Nepal Civil Service Employees’ Organisation, who challenged the constitutionality of the ordinance targeting these bodies. While the majority supported the stay, Justices Binod Sharma and Sharanga Subedi noted dissenting views, emphasizing the complexity of the legal battle ahead. The Office of the Attorney General has now been directed to provide a written justification for the dissolution within seven days.

Simultaneously, the judiciary extended its protection to academic institutions. A single bench presided over by Justice Shreekanta Paudel issued an interim order to stop the immediate implementation of a decision to dismantle student organizations across various universities. Leaders from several student bodies had approached the court, naming the Office of the Prime Minister and the Council of Ministers as defendants. They argued that these organizations are vital for student representation and that their sudden abolition lacked a proper legal and constitutional foundation.

The government’s push to scrap these unions—often criticized for their political affiliations—was part of a broader effort by the Balendra Shah-led administration to streamline state functions and reduce political interference in public offices. However, labor groups and student unions view the move as an “employment shock” and a violation of the right to collective bargaining. With the Supreme Court scheduling critical hearings for May 18 regarding student bodies and May 20 for trade unions, the coming weeks will determine whether the government’s “massive cart” of reform can proceed or if the constitutional right to organize will remain an untouchable pillar of the nation’s democracy.

For now, the status quo remains. The unions and student bodies will continue their operations as both parties prepare for a high-stakes showdown in the halls of the Supreme Court later this month.