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LawBytes · Legal Guides

Arbitration and ADR in Pakistan: Resolving Disputes Outside Court

How an arbitration clause is enforced, how an award is made a decree, and when mediation is the better route.

Alternative dispute resolution — arbitration, mediation and conciliation — exists precisely because litigation is slow and adversarial. Commercial contracts increasingly build one of these routes in from the outset.

Arbitration

Domestic arbitration is governed by the Arbitration Act 1940, while arbitration involving a foreign element may engage the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act 2011, which gives effect to the New York Convention.

Where a contract contains a valid arbitration clause, a court will generally refer the parties to arbitration rather than trying the dispute itself, provided the clause is properly invoked at the right stage.

Enforcing an award

An arbitral award is not self-executing. It generally needs to be filed and made a rule of court before it can be enforced in the same manner as a decree.

Mediation

Mediation is non-binding until the parties reach and formalise a settlement, and works best where an ongoing relationship — commercial or family — makes an adversarial result undesirable for both sides.

What to do next

Bring the underlying contract, particularly any dispute-resolution clause, and a clear account of what has already been attempted between the parties.

Written by

Waleed Mansoor

Advocate High Court · Founding Principal

LL.B., University of the Punjab. Diploma in Tax and Forensic Laws. Founder of LawBytes, and formerly Director of the Legal Leadership Forum. Practises across litigation, corporate, regulatory and immigration matters.

More about the practice

This is general legal information, not advice. It describes how a process generally works and does not address the facts of any particular matter. Reading it does not create a lawyer–client relationship, and outcomes depend on the specific facts of each case.

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