(1) In case any dispute arises between the domestic and foreign investors and the Government of Nepal and the foreign investors regarding foreign investment, such investors shall resolve such disputes through mutual discussion or negotiation.
(2) If the dispute cannot be resolved within forty-five days of the dispute arising in accordance with sub-section (1), such dispute shall be resolved by mutual negotiation between the parties in the office.
(3) If the dispute cannot be resolved within forty-five days after the dispute has arisen through the procedure under sub-section (1) or (2) and if there is a joint investment or dispute resolution agreement between the parties to the dispute to resolve such dispute, the dispute shall be resolved according to such agreement.
(4) According to subsection (3), the parties shall inform the office that the dispute has been resolved within fifteen days of such dispute being resolved. But the parties will not be obliged to inform about the conditions under which such agreement has been reached.
(5) If there is no provision regarding dispute resolution in the agreement between the parties as per sub-section (3), such dispute shall be resolved by arbitration in accordance with the law on arbitration of Nepal.
(6) Disputes arising in relation to any foreign investment shall be settled by arbitration in accordance with the prevailing rules or procedures of the United Nations Federal Commission on International Trade Law (UNCITRAL), unless otherwise agreed by the parties to the dispute.
(7) The arbitration conducted under this section shall be held in Nepal and the substantive law of Nepal relating to arbitration shall be applicable. But in the case of sub-section (3) it will be as per the same sub-section.
(8) If there is no agreement regarding dispute resolution between the parties before the dispute or if the agreement is felt to be insufficient, the related parties may enter into an agreement to resolve the dispute even after the dispute arises. The information of the agreement made in this way should be given to the office.
(9) Even in the case of an agreement subject to sub-section (8), the dispute can be settled according to this section.