While most civil and commercial disputes are resolved, criminal cases against Phajo Nidup are pending

Dorji Choden

The Supreme Court of Bhutan has concluded deliberations on 14 out of 15 appeal cases involving Phajo Nidup, in what is one of the biggest legal cases involving civil and commercial disputes in the country.

Out of the 15 appeals, the Supreme Court fully upheld seven High Court judgments while six appeals were withdrawn. One case remains unresolved for now.

The affirmed judgments involve disputes worth Nu 232.49 million.

Under these judgments, Phajo Nidup has been ordered to pay Nu 189.41 million to various parties, including financial institutions, while he is entitled to receive Nu 49.23 million from others.

The cases primarily stemmed from disputes over commercial bank loans and other civil matters, which were part of 40 cases previously adjudicated by the High Court.

Phajo Nidup’s main appeal focused on the valuation of his properties slated for sale or auction. He argued that his properties should be assessed at current market rates rather than the Royal Monetary Authority (RMA) guidelines. However, the Supreme Court upheld the High Court’s decision, dismissing his appeal.   

Last year, the High Court reviewed 40 civil cases related to Phajo Nidup. Among these, 12 judgments were upheld, 27 were partially reversed, and one case was withdrawn.

The Supreme Court issued its recent rulings over six months in 2024, with most decisions delivered in the latter half of the year from July to December.   

While the Supreme Court has resolved most civil and commercial disputes, criminal cases involving Phajo Nidup are pending.

Phajo Nidup was sentenced to 21 years, one month, and 27 days in prison by the Time Bound Bench last year. Of this, five years and seven months are compoundable, meaning he can pay fines to avoid serving that period. However, he must serve the remaining 15 years and five months in prison.

The case also implicated 49 other individuals, including employees of banks, government agencies, and private individuals. 

Officials from Bhutan Construction and Transport Authority, Phuentsholing Thromde, National Land Commission, Bank of Bhutan, Royal Insurance Corporation of Bhutan, Druk PNB Bank Limited, Bhutan National Bank, Bhutan Development Bank Limited, T-Bank and Royal Bhutan Police were sentenced for offences such as bribery, forgery, and abuse of functions.