(1) From the date of commencement of this Act, all State Courts within Nepal are abolished. The documents of the case matter and the documents of the court case, including the pending penalty and imprisonment, will be transferred to the district court designated by the Government of Nepal, and that court shall take out the case before it, keep it in custody and cancel the remaining penalty and imprisonment, and also fill in the bago of the dispute. It will be done according to Nepal law.