(1) If there are reasonable grounds for the liquidation of an establishment wholly owned by the Government of Nepal, the Government of Nepal may cancel such establishment by publishing a notice in the Nepal Gazette, regardless of what is written in the prevailing law. can make separate arrangements regarding the cancellation process.
(2) The outstanding amount of the establishment which has been canceled according to sub-section (1) can be recovered as government balance.
(3) The Government of Nepal may transfer the assets or liabilities of the foundation which has been canceled according to sub-section (1) to other bodies or dispose of the non-functional assets and liabilities that cannot be incurred on the recommendation of the committee.
(4) If all the obligations of such an establishment cannot be paid from the property of the establishment, the remaining obligations shall be discharged according to the prevailing law.