Supreme Court Reinstates Shakya as NEA Managing Director, Calls His Removal ‘Prejudiced and Retaliatory’

The Supreme Court has reinstated Hitendra Dev Shakya as Managing Director of the Nepal Electricity Authority (NEA), ruling that the government’s decision to remove him was “prejudiced and retaliatory.”

A joint bench of Justices Nahakul Subedi and Shrikant Paudel held that Energy Minister Kulman Ghising recommended Shakya’s removal without following the legally required procedures. On September 21, the Cabinet had dismissed Shakya and appointed Manoj Silwal in his place upon Ghising’s recommendation. The government had transferred Shakya to the Water and Energy Commission, a decision he later challenged before the Supreme Court.

The bench found that the process outlined in the NEA Service Regulations, 2004, and the performance agreement with Shakya had not been followed. “The proposal of the concerned departmental minister to remove the Managing Director appears prejudiced and retaliatory when no legally mandated procedure has been adopted,” the verdict states. “Such decisions and actions, which appear arbitrary on the face of the record, cannot stand in the realm of law and justice.”

The court held that the Cabinet’s decision to remove Shakya contradicted existing legal provisions, the performance agreement, and judicial principles repeatedly upheld by the Supreme Court in similar cases. It ordered the annulment of the government’s decision and directed authorities to allow Shakya to resume his duties as NEA Managing Director.

Responding to the verdict, Shakya said he felt that the court had delivered justice. “The court heard my grievances, understood the seriousness of the case, and ultimately opened the door to justice,” he said. “I feel relieved.”

Shakya said he would report to the authority with the court order. Asked whether it would be difficult to work under the same government that removed him, he said he would do his best to maintain a cordial working environment. “I have worked with the current minister before as a team. I will continue to work in the same spirit,” he added.

The court noted that the NEA Act, 1984, clearly provides for a Managing Director in the authority and that Shakya could not be transferred or removed before the completion of his term. It ruled the government’s decision unlawful.