Beyond "Actual Bias": Why Nepal Must Adopt the IBA Traffic Light System

An arbitral process is only as strong as the integrity of the individuals who lead it. As Nepal seeks to expand its horizons in trade, commerce, and international investment, the reliability of its dispute resolution mechanisms is a primary concern for fostering investor confidence. Central to this integrity is the principle of neutrality—the requirement that arbitrators remain independent and impartial. However, while international standards have evolved into a sophisticated "Traffic Light System" through the International Bar Association (IBA), Nepal’s statutory framework remains constrained by an outdated evidentiary threshold that risks undermining the very fairness it seeks to protect.