How Does Alternative Dispute Resolution (ADR) Work in Pakistan? A Comparison with Britain and the United States

Alternative Dispute Resolution means a process in which parties resort to resolving dispute other than adjudication by courts and includes but is limited to arbitration, mediation, conciliation and neutral evaluation. Alternative Dispute Resolution works in civil as well as in criminal proceedings in Pakistan. The procedure of Alternative Dispute Resolution as adopted in Pakistan according to Alternative Dispute Resolution Act 2017.

Alternative Dispute Resolution in Civil matters:

Section 89-A of Civil Procedure Code describes Alternative Dispute Resolution, “ The Court may where it considers necessary having regards to the facts and circumstances of the case with object of securing expeditious disposal of case in or in relation to a suit, adopt with the consent of the parties Alternative Dispute Resolution Method including mediation and conciliation.”

Procedure:

            In Civil matters on the first date of case after appearance if all the parties refer their matter to ADR and which is mentioned in the schedule.

Exception:

  1. Any party to the dispute does not agree for ADR.
  2. The Court considers that that according to facts and circumstances of the case there is no possibility of resolution of the dispute through ADR.
  3. An intricate question of law or fact is involved.

The Court may frame issues before referring the matter to ADR with consent of the parties for facilitating the settlement of dispute.

The neutral may frame additional issues during the course of ADR proceedings with consent of the parties. If both parties are female then matter shall be referred to a female. The both parties shall appear before Neutral at ADR Centre, the both parties shall take part in ADR proceedings through duly authorized attorneys. The appointed Neutral shall dispose off the matter within 30 days. If the matter is referred to an arbitrator, he shall complete the process within 60 days and on request of arbitrator the Court may extend this period for further 30 days. If any party fails to attend the proceedings of ADR, it shall be liable to pay costs to the other party determined by the Neutrals. If a settlement reached at the result of mediation proceedings, Neutral shall record such settlement duly witnessed and signed by both the parties and submit it to the Court. The shall pronounce the judgement and decree in terms of settlement. When an order is passed by ADR proceedings it shall be executed in the manner prescribed executable in the relevant law.

Civil matters in jurisdiction of ADR according to schedule of ADR Act 2017.

Alternative Dispute Resolution in Criminal issues:

            Section 345 of Cr.P.C. deals with Criminal issues of ADR. All offences are described with punishments which are compoundable under sec.345 are dealt by ADR process. A High Court in exercise of its powers may compound any offence under sec.439 and Court of Sessions u/s.349-A of Cr.P.C. The Court may appoint Neutral to facilitate the compounding of an offence. The Court shall refer the case for compounding of an offence with consent of the parties. The appointed Neutral shall try to facilitate the compounding of an offence within 30 days. When the offence is compounded Neutral shall submit the report in the relevant Court. The fees and costs of ADR shall be born by both parties.

Cooperative studies between Pakistan Britian and American ADR system of justice:

  1. ADR System of Pakistan

C.P.C. Sec. 89-A, Cr.P.C. Sec.345, ADR Act 2017, Punjab ADR Act 2019. Parties may refer case to ADR with mutual consent, not mandatory. Judge can refer with consent. If you refuse no penalty. Main methods of ADR are mediation, arbitration or conciliation. Neutrals or mediators are appointed by court. It is very cheap process. New practice so success rate is 40 percent. ADR in Pakistan is allowed but still optional. People prefer courts.

  1. ADR System in Britian

Civil Procedure Rules Part. 1, Churchill Vs Meron Case deals with ADR System in England. It is working since 2024. Now the court can compel the parties to adopt ADR process. It processes through mediation, conciliation or arbitration. It is expensive and short-term procedure. About 70 percent cases are settled in mediation. In England ADR is now almost compulsory. People try it in good faith.

3.ADR System in America

ADR Act 1998 and Federal Arbitration Act 1925 falls in ADR system of America. It is mandatory and judge orders ADR at early stage to process the case. Some courts can dismiss the case. The Neutrals process summery jury trial. It is cheap and often free in America. ADR process the case in about 3 months. It is binding on parties and mostly not appealable. ADR is main system of justice in America and trial is the last option.

Conclusion:

To sum up the discussion we can say that ADR is the best system of justice. It is universally acknowledged and appreciated system. Business community usually adopt this method in contractual matters between their partners. With the passage of time in this fastest digital era people will use this method to save time and money.

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