Kathmandu- The Supreme Court has issued a directive order to the government to formulate necessary laws to regulate ride-sharing, which has been flourishing recently.

The full text of the order given by the then Chief Justice Bishwambhar Prasad Shrestha and Tek Prasad Dhungana after hearing the writ petition of advocate Shyam Kumar Shrestha, who had approached the Supreme Court six years ago seeking cancellation of the registration of Pathao, has been made public.

In the order, the Supreme Court has clarified that Pathao Nepal Pvt. Ltd. was registered with the Companies Registrar’s Office, Department of Industries as per the law, its legal entity is seen, and the registration of the legal entity cannot be cancelled from the writ jurisdiction despite the alternative remedy of canceling it.

The Supreme Court has held that the order sought in the writ cannot be issued. Along with this, the Supreme Court has dismissed the writ petition and ordered the government to make adequate legal arrangements as soon as possible to address the transportation-related business like ride-sharing.

The directive order states, “A directive order has been issued in the name of the Government of Nepal, the Ministry of Industry, Commerce and Supplies, the Department of Industries and the Department of Transport Management to continuously monitor and ensure that the legal entity providing computer-related services, such as Pathao Nepal Pvt. Ltd., with the terms and conditions as prescribed in relation to ride-sharing services operated through mobile apps.”

The Supreme Court has stated that ride-sharing services should be viewed in relation to employment rights, consumer rights, entrepreneurship and economic prosperity. The Supreme Court also said in the order that at present, there is a direct relationship between this service and a large number of drivers as employees and passengers as service recipients.