Kathmandu, August 21, 2026. Nepal’s Supreme Court has officially annulled the government’s appointment of Maheshwar Bhakta Shrestha as the Executive Chairman of Nepal Airlines Corporation (NAC), ruling the decision entirely unlawful.
Why was the appointment annulled?
The court cited five major legal and procedural violations:
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Merit Violation: The government bypassed the top-ranked candidate, Upendra Bahadur Karki, to appoint Shrestha.
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Age Limit Breach: Shrestha had already crossed the mandatory 65-year age limit for the executive role.
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Legal Non-compliance: The move violated the NAC Act of 2019 and other established appointment guidelines.
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Improper Reinstatement: Appointing a retired employee of the same institution without following strict legal prerequisites breached corporate governance.
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Government Arbitrariness: The decision was deemed a blatant misuse of power, made without any solid justification.
Impact and Warning to the Government
Following the verdict, Shrestha has been immediately stripped of his executive position, though he will remain a board member.
This ruling serves as a strict judicial warning: the government cannot bypass established laws, meritocracy, and transparency for arbitrary appointments. The Supreme Court has now directed the government to initiate a fresh, lawful, and transparent appointment process for the NAC leadership.
