Nepal Supreme Court Strikes Down Nepal Airlines Chairman Appointment in Latest Governance Blow

Nepal’s Supreme Court has overturned the appointment of Maheshwar Bhakta Shrestha as executive chairman of Nepal Airlines Corporation, ruling that the government’s decision was unlawful and adding fresh pressure to an already turbulent leadership story at the state-owned carrier.

The verdict came from a joint bench of Justices Sunil Kumar Pokharel and Balkrishna Dhakal, following a writ petition filed by board member Upendra Bahadur Karki, who challenged the cabinet’s decision on legal grounds.

A ruling that puts procedure under the microscope

The court’s decision centers on the legality of how the appointment was made, not just on the appointment itself. In a public-sector role as sensitive as Nepal Airlines’ top leadership, the ruling underscores how closely courts are now scrutinizing merit, process, and compliance in government-linked appointments.

For Nepal Airlines, the move is more than a personnel change. It adds another layer of uncertainty to an organization that has repeatedly faced questions over how its board and senior leadership are selected.

Why this matters for Nepal Airlines

State-owned airlines depend on stable leadership to manage operations, safety oversight, finances, and long-term restructuring. When appointments are challenged in court, the ripple effects can reach everything from boardroom decision-making to public confidence in the airline’s governance.

This latest ruling also reinforces a broader message: cabinet decisions are not immune from judicial review when appointment processes appear to bypass established rules or legal standards.

A wider governance test

The case is likely to be watched closely beyond Nepal Airlines. It highlights a recurring challenge for public institutions across South Asia, where leadership appointments often become flashpoints for disputes over transparency, qualification criteria, and political influence.

For now, the annulment leaves Nepal Airlines facing another leadership reset, with the government expected to respond to the court’s verdict and determine its next move.