Lack of ADR (Alternate Dispute Resolution) in Pakistan

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Lack of ADR (Alternate Dispute Resolution) in Pakistan – Legal Overview

Lack of ADR (Alternate Dispute Resolution) in Pakistan – Legal Overview

The concept of Alternate Dispute Resolution (ADR) includes arbitration, mediation, and conciliation — methods that resolve disputes without lengthy court trials. Globally, ADR has helped reduce case backlogs, but in Pakistan, its growth has been painfully slow and legally underdeveloped.

What is ADR?

ADR refers to informal or semi-formal mechanisms to resolve civil or commercial disputes without going through traditional courts. It is faster, cost-effective, and confidential.

Legal Framework in Pakistan

  • Arbitration Act, 1940 (outdated and rigid)
  • Code of Civil Procedure (CPC) amendments allow court-referred mediation
  • Small Claims and Minor Offences Ordinance, 2002
  • Punjab and Sindh have introduced Mediation Rules under civil procedure

Despite these laws, ADR is rarely practiced effectively in courts or business disputes.

Why ADR Has Failed in Pakistan

  1. Outdated Arbitration Laws: Pakistan still uses the British-era Arbitration Act of 1940, which lacks modern standards and enforcement mechanisms.
  2. Lack of Institutional Support: There are very few arbitration or mediation centers, especially in smaller cities.
  3. No Trust in Neutral Mediators: Parties often suspect bias and fear corruption in out-of-court settlements.
  4. Judicial Resistance: Many judges prefer litigation and rarely refer cases to mediation.
  5. No Public Awareness: People and even lawyers are unaware of ADR benefits.

Impact on Justice System

Pakistan's courts are overburdened with over 2 million pending cases. A well-functioning ADR system could significantly reduce this load and provide timely justice to common citizens.

International Comparison

Countries like India, Singapore, and the UK have adopted ADR successfully. India’s Arbitration and Conciliation Act, 1996 is far more effective than Pakistan’s outdated laws.

Recent Developments

  • Islamabad High Court has launched model mediation centers
  • Punjab has pilot ADR programs in family and civil courts
  • Pakistan Bar Council has recommended ADR training for lawyers

Recommendations for Reform

  • Replace the 1940 Act with a modern Arbitration & Mediation Law
  • Make ADR training compulsory in law schools
  • Incentivize judges to refer cases to ADR
  • Build public trust and awareness
  • Establish provincial ADR centers with monitoring

Conclusion

ADR is a tested solution to legal delays and rising litigation costs. Without serious reforms and awareness, Pakistan risks further judicial gridlock. ADR is not just an option — it is a necessity for the future of justice in Pakistan.

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Written by Syed Mustafa Hussain Gardezi – Advocate High Court
Visit: lets-legislate.blogspot.com

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