Section 2
State Courts To Be Dissolved:
(1) All state courts existing within Nepal are, hereby, dissolved upon the date of the commencement of this Act.
(2) The documents including the case files of all cases filed in the state courts dissolved pursuant to sub-section (1) but yet to the disposed, disposed case files, records of penalty, punishment of fine and imprisonment due to be recovered shall be transferred to the district court as specified by the Government of Nepal, and the court shall
dispose the cases, retain the records safely, recover the due penalty, fine and imprisonment, and fee for compromise and effect the recovery of amount in controversy to litigants in accordance with the Nepal laws as
if the cases were filed in it.
(2) The documents including the case files of all cases filed in the state courts dissolved pursuant to sub-section (1) but yet to the disposed, disposed case files, records of penalty, punishment of fine and imprisonment due to be recovered shall be transferred to the district court as specified by the Government of Nepal, and the court shall
dispose the cases, retain the records safely, recover the due penalty, fine and imprisonment, and fee for compromise and effect the recovery of amount in controversy to litigants in accordance with the Nepal laws as
if the cases were filed in it.