Alternate Dispute Resolution

What is ADR?

Not all disputes necessitate litigation.
Consequently, it is the duty of every legal consultant to provide their client with the most effective advice on the approach to take in order to achieve the desired results in the shortest time possible.
Alternative Dispute Resolution (ADR) is a method of dispute resolution that is distinct from court litigation. These primarily include Arbitration, Mediation, and Conciliation.

The Alternate Dispute Resolution Act 2017 and the Alternate Dispute Resolution Rules 2018 govern ADR in Pakistan.

Arbitration and mediation are the most common ADR techniques. Both of which require the consent of the parties
and are conducted in the presence of neutral persons.
Arbitration and mediation differ in the nature of the award or decision given by the neutral person.
Mediation aims to facilitate the settlement of disputes between parties by suggesting solutions.
Arbitration involves a final and binding decision made by the arbitrator. In Pakistan, mediation is the most commonly
used method.

The Constitution also provides a mechanism for swift remedy in the event of infringement, which is the issuance of rights to the High Courts under Section 199 and to the Supreme Court under Article 184(3).

There are several benefits to Alternative Dispute Resolution.

  • ADR offers faster and more cost effective dispute resolution.
  • ADR offers faster and more cost effective dispute resolution.
  • Mediator or Arbitrator can devote more time in understanding the dispute and the interest parties than the court.
  • ADR allows parties to resolve issues amicably, while court proceedings may lead to permanent enmity.

Dispute resolution through (ADR) is dependent upon the parties ‘intentions. ADR can only be initiated when all parties consent to resolving their disputes through this method. A civil court is required to refer a civil litigation to ADR as soon
as the written statement or reply to a written statement is filed, provided that the parties have consented to the use of ADR for their dispute, in accordance with the Act.
The Court has the option of referring the dispute to a “neutral” or to a notified “ADR Centre.” Alternatively, parties can also independently contact any of the approved ADR Centres themselves. The Court is required to obtain consent from all parties at each stage. If a party later disagrees and wishes for the Court to directly manage the case, the Court will proceed accordingly. Thus, ADR grants parties a significant degree of autonomy and independence in determining the course of action they wish to take to resolve their disputes.

We offer top-notch legal consultancy services to our clients, helping them make informed decisions between litigation and ADR. Our expertise also comes into play during ADR proceedings, ensuring that our clients’ positions are effectively communicated to mediators or arbitrators, and all available legal and procedural remedies are utilized.

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