DETAILS OF THE CASE
Plaintiff- Chairman Kashiram Gurung on behalf of Unity Life International Ltd. 
Defendant- Office of Council of Ministers
NKP-2069
Decision no.: 8814
Year: 2069
Decision date: 2068/12/15
Writ No.: 2066-WO-1293
Writ petition- Certiorari/ Mandamus

FACTS OF THE CASE
Unity Life International Ltd. is a registered company under the Office of the Registrar of Companies, Ministry of Industry, Commerce, and Supplies, authorized to carry out its stated objectives. Alongside this entity, Assurance Unity Life International Limited has also been duly registered, obtaining service number 302813010 from the Revenue Department. The company operates under a broad umbrella of services, including healthcare through Jana Unity Life Hospital and Research Center Pvt. Ltd., which has branches in multiple locations such as Satungal, Kathmandu, Pokhara, Ilam, Hetauda, Nawalparasi, Sindhuli, Baglung, Syangja, Damauli, and Dang. Additionally, the company manages 14 departmental stores spread from Mechi to Mahakali, providing quality food and essential services to the public.
In an effort to boost industrial growth and support local farmers, Unity Life International has invested 60 percent in a bamboo and bamboo plywood factory in Nepal, utilizing wasted bamboo resources and generating employment for over 2,000 people. The company has also ventured into the tourism sector by launching initiatives like the Airport Arrival Plan and expanding its air services through Unity Airlines. Furthermore, it has established collaborations with reputed national-level hydropower companies and insurance providers, enhancing its service portfolio.
Previously known as Assurance Unity Life International Ltd. until 2066 BS, the company has been actively involved in health, tourism, and hydropower sectors. It has also secured insurance coverage for its members, service recipients, and employees through The Oriental Insurance Company Limited, as per their mutual agreement. Recognized for its excellence, Unity Life International is an ISO 9001:2008 certified company and has received honors and testimonials from high-ranking officials of constitutional bodies and political organizations.
Registered under the Companies Act, 2063 (Company Ordinance, 2062), the company’s primary objectives, as outlined in Section 4 of its Memorandum of Association, include, 
1.    Conducting different types of education and health related programs . 
2.    Conducting short-term and long-term programs related to health in coordination with various companies .
3.    Doing necessary work to promote and develop professions related to various types of businesses (health , education , industrial , agricultural communication) conducted by citizens involved in various professions in the country and abroad .  
4.    To expand internal and external tourism services and make arrangements for air travelers from abroad and home to travel by air to their residences by charging necessary fees . 
5.    Identifying problems related to poverty , illiteracy , unemployment and health existing in the society and conducting various programs to solve those problems . 
6.    This company, by itself or with various government and non-government companies , institutions and any body, will conduct programs related to health , education, transportation , industry, tourism , sports , etc. 

To fund its diverse initiatives, Unity Life International has collected over 3.5 billion rupees from more than 350,000 members, demonstrating its significant reach and impact across various sectors in Nepal. Through its multifaceted operations, the company continues to contribute to economic development, employment generation, and social welfare.

CLAIM OF PETITIONER
The petitioners state that Unity Life International Ltd. has created employment opportunities for around 2,000 doctors, nurses, engineers, and technical assistants. Additionally, about 30,000 Nepali citizens work with the company on a commission basis. Despite these contributions, some newspapers have published false news to damage the company’s reputation. Based on these reports, the proprietors, directors, and employees were arrested, the company’s bank accounts were frozen, hospitals and offices were shut down, important documents were seized, and the company was illegally forced to stop operations. The petitioners argue that these actions violate the right to freedom of profession and deprive the company of its fundamental and legal rights.
The Government of Nepal’s Ministry of Home Affairs, Planning, and Monitoring Branch had earlier instructed all District Administration Offices to support the company’s programs. This shows that the government recognized the company’s work. The company has a policy of returning investments to members when requested, after deducting taxes and service charges. Under this policy, 4,247 members have already received their investments worth 3 crore 50 lakh rupees. However, the defendants suddenly froze the company’s movable and immovable properties, arrested employees without notice, and created obstacles in returning investments to other members. The petitioners clarify that the company has not collected money illegally and has already paid around 15 crore rupees to the government.
The defendants have accused Unity Life International of running an insurance business, but the petitioners deny this. They explain that the company has an agreement with The Oriental Insurance Company Limited only to provide accident insurance. In case of a member’s natural death, the company gives relief assistance of up to 1 lakh rupees, while Oriental Insurance pays 5 lakh rupees for accidental deaths. Freezing the company’s property without reason prevents the company from using or selling it, which violates Article 18 (Right Regarding Employment and Social Security) of Nepal’s Interim Constitution, 2063 BS.
Additionally, the opposition has not provided any information about why the company was locked out or what illegal activities it supposedly committed, which goes against Article 27 (Right to Information) of the constitution. The company has also partnered with FINA World Multipurpose Cooperative Society Limited, where member funds are kept for five years before being returned with an added amount. No lawsuits have been filed against the company, but the Office of the Registrar of Companies sent a letter on 2067/2/28 asking for a reply regarding alleged fraud, insurance business, and foreign exchange violations.
The petitioners argue that the opposition’s actions are unjust and demand that the illegal restrictions on the company be removed. They have filed a writ petition seeking an interim order to:

1.    Stop arrests unless done lawfully,
2.    Resolve the issue through proper legal procedures,
3.    Unfreeze all properties and bank accounts,
4.    Reopen all locked offices and hospitals, and
5.    Stop the implementation of the inquiry committee’s report and decisions until a fair investigation is conducted.

SINGLE BENCH DECISION ON INTERIM ORDER
The Single Bench examined whether an interim order should be issued in favor of the petitione or not?
Company has carried banking transactions without license/ permission letter. It has carried on insurance business, assets have been bought in person’s name from Company’s property. It has established Assurance unity life international ltd and time and again converted to Unity life International ltd. which is misleading to people as an insurance company.

Since charge sheet is filed against petitioner, petitioner has been found involved illegally in business conduct, the legal proceedings wouldn’t infringe the rights of the petitioner and it would cause no unbearable losses to the same. Hence, as per the principle of BALANCE OF CONVENIENCE, it is inappropriate to issue an interim order.

WRITTEN RESPONSE FROM GOVERNMENT AUTHORITIES
1.    Insurance Committee
The Insurance Committee responded that while the company claims it's not an insurance provider, its own Articles of Association (Section 49(1)) mentions providing accident insurance of 5 lakh rupees, proving it operates as an unlicensed insurance business. This violates Section 10 of the Insurance Act, 2049, which requires proper authorization.
2.    Revenue Department
The Revenue Department stated no legal rights were violated in this case. They believe the writ petition should be canceled from the beginning as it lacks proper legal standing.
3.    OCR/ Ministry of Industries
The Office of Company Registrar (OCR) under the Ministry of Industries noted suspicious inconsistencies in the company's reported membership numbers, suggesting they frequently change data to appear legitimate. They argued the company cannot defend itself just by showing appreciation letters while conducting unauthorized business activities that violate its own Memorandum of Association. They recommended dismissing the petition based on clear evidence.
4.    Nepal Government/ CoM
The company has carried on insurance business without permission from the Insurance Committee, carried out banking transactions without permission from Rastra Bank, bought/sold stocks without permission from the Security Board, and worked against the objectives set in the MoA. The investigation is in accordance with the law. So, the writ petition should be quashed.
5.    Ministry of Finance
The Ministry of Finance pointed out the company's various illegal schemes and networking activities, clarifying that they aren't involved in arrests or detentions. They supported quashing the writ petition.
6.    Nepal Security Board, Gaushala
As a public company, it should issue an IPO to raise capital. Collecting more than 15,000 per member on the name of different projects is illegal. So, the proceedings against the company are completely legal.
7.    Nepal Rastriya Bank
The petitioner company couldn’t establish its locus standi and the infringement of its rights clearly. NRB has not permitted carrying out banking transactions. As the police department has asked to freeze the account until the investigation is completed, it has acted accordingly. So, the writ petition should be quashed.
8.    Ministry of Commerce
Ordinance related to network marketing business, 2066 has been declared void, and information has been provided not to conduct such activities. So, the writ petition should be quashed.
9.    Revenue Office, Lazimpat
Lazimpat Revenue Office stated that paying taxes doesn't make other illegal activities acceptable, supporting the petition's dismissal.
10.    Land Reform Office
The act of freezing documents and property is in accordance with the decision of the government. There is no infringement of rights. So, the Writ petition should be quashed.
11.    Home Ministry
The act of withholding property during an investigation cannot be considered an infringement of rights. So, the writ petition should be quashed.
12.    Police Headquarters, Naksal
Police Headquarters cited the company's illegal activities and ongoing investigation as valid reasons to reject the writ petition.

QUESTION TO BE DEALT WITH
1.    Does the Government have the right to investigate a company based on complaints about fraudulent or harmful activities? 2.    If an investigation finds illegal activities, can the government order an immediate stop to such operations? 3.    Whether the petitioner company  has acted in accordance with Companies law and other relevant laws? 4.    Are directors, founders, shareholders, and employees personally liable for company activities, especially if property was bought in personal names? 5.    Can the directors and employees be held liable prior to the company in case activities conducted are against the objectives set out in MoA? 6.    Has the legal proceedings initiated infringed the right to profession, employment and property of company? 
Since the company engaged in widespread illegal activities and failed to prove its innocence, the writ petition is quashed (dismissed). 

DECISION OF THE SUPREME COURT
The Supreme Court rejected (quashed) the writ petition filed by Unity Life International Ltd., meaning the company's legal challenge against government actions was dismissed.
The Court issued directive orders to the Nepal Government to make improvements in laws and enforcement:
1.    Amend Insurance Laws

• The government must update the Insurance Act, 2049 to impose stricter punishments on businesses running insurance services without a proper license.
• Insurance-related laws should be revised regularly to prevent fraud.

2.    Strengthen Financial Monitoring

• Nepal Rastra Bank (NRB), Securities Board, and Insurance Committee must set up special inspection units to investigate and punish illegal fundraising schemes.
• If companies collect money from the public without approval, legal action should be taken immediately.

3.    Improve Company Registrar (OCR) Efficiency

• The Office of the Company Registrar (OCR) should include experienced lawyers, accountants, and business experts to improve its work.
• OCR should be placed under the Department of Law and Justice for better regulation and quality control.

4.    Stop Misuse of Appreciation Letters

• New laws must be made to prevent companies from misleading people by showing government appreciation letters as proof of legitimacy.
• Copies of letters from the Foreign Ministry and Home Ministry should be included in investigations to verify authenticity.

5.    Ensure Compliance with Court Orders

• A copy of this judgment must be sent to all concerned government offices.
• The Supreme Court’s inspection department must monitor whether these orders are being followed properly.

PRINCIPLE ESTABLISHED
The Nepal government has imposed a constitutional obligation to initiate proceedings if any illegal transactions carried out by any person, organization, or company have infringed on people’s right to property, if an act conducted by such a company is misleading and fraudulent.
If the government publicizes in writing to initiate legal proceedings in case of such conduct, it cannot be said an encroachment of the government in the jurisdiction of the concerned authority or department.
If the director or company is itself in the BOD of other development banks, the company cannot be said to have obtained permission to conduct banking transactions.

CONCLUSION
The Supreme Court's dismissal of Unity Life International's petition reaffirms Nepal's stance against fraudulent business practices. The ruling validates government actions against unauthorized financial activities and holds company officials personally accountable for misconduct. By mandating stronger regulations and oversight mechanisms, the judgment strengthens corporate governance while protecting public interests from deceptive schemes. This decision sets a clear precedent for lawful business operations in Nepal.