Parajuli, 61, was administered the oath of office by President Bidya Devi Bhandari at Rastrapati Bhawan in Sheetal Niwas.
Prime Minister Sher Bahadur Deuba, Vice President Nanda Bahadur Pun, Speaker Onsari Gharti, chiefs of constitutional bodies and judges of the Supreme Court were present on the occasion.
The Parliamentary Hearing Special Committee (PHSC) of the Legislature-Parliament yesterday unanimously approved the name of Parajuli for the post of the chief justice.
Parajuli said he has prepared a 39-point action plan in connection with the judicial reform.
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He said there was widespread public complaint that justice delivery is very slow in the country, saying slow service is no service.
The Parliamentary Special Hearing Committee, Legislature-Parliament yesterday unanimously proposed the name of Parajuli as the new chief justice. He will remain at the post until April, 2018.
A meeting of the constitutional council on June 29 had nominated Parajuli's name and sent for the parliamentary hearing.