Article 126(1) of The Constitution of Nepal provides that the judicial power of Nepal shall be exercised by the courts and the judicial authorities pursuant to the Constitution and other laws and recognized principles of justice. Article 127 of the Constitution has incorporated the provision of Supreme Court, High court and District Court along with the provision for establishing judicial bodies in the Local level or other bodies as required may be formed to pursue alternative dispute settlement mechanism. Similarly, Article 137 of the Constitution establishes the Constitutional Bench in the Supreme Court to hear the disputes related to jurisdiction of Federal, State and Local level as well as the disputes on qualification of elected member of federal or state Parliament.

Supreme Court as the highest court of Nepal is recognized as a court of record. At present, there are 7 High Courts along with nine permanent Benches and two temporary Benches of the High Court. 75 District Courts and other judicial institutions like Debt Recovery Tribunal, Revenue Tribunal, Administrative Court, Foreign Employment Tribunal and Special Court are also discharging the duties of justice dispensation in Nepal. Local level judicial committee has also been working in the local level.

The administration of justice of the country has been regulated by the various statutes and regulations related to judiciary, such as the Constitution of Nepal, Administration of Justice Act, 2016, Supreme Court Act, 2016, Supreme Court Regulations, 1992, High Court Regulations, 2016 and District Court Regulations, 2016.