Pakistan’s judicial system has long struggled with a significant backlog of cases. According to various reports, millions of cases are pending in the country’s courts, with the backlog stretching across all levels, from district courts to the Supreme Court. The delay in justice is a major issue, as it undermines public confidence in the judicial system and prolongs suffering for those waiting for a resolution.
In this context, out-of-court settlements have gained prominence as a means to alleviate the pressure on courts. By resolving disputes outside of the formal judicial process, cases that would otherwise occupy courtrooms for years can be settled much more quickly. This is particularly important in a country like Pakistan, where there are not enough judges, courtrooms, or administrative resources to keep up with the ever-growing volume of cases.
Benefits of Out-of-Court Settlements
- Speed and Efficiency: One of the primary advantages of out-of-court settlements is the speed with which disputes can be resolved. Court cases can drag on for years, but ADR processes like mediation or arbitration can often result in resolutions within weeks or months. This is particularly helpful in urgent matters, such as commercial disputes or family matters involving children.
- Cost-Effectiveness: Litigation can be expensive, with legal fees, court costs, and other associated expenses quickly adding up. Out-of-court settlements, on the other hand, are generally more affordable. In many cases, the parties involved can split the costs of the mediator or arbitrator, making it a more accessible option for people with limited financial resources.
- Confidentiality: Unlike court proceedings, which are typically public, out-of-court settlements can be kept confidential. This is a crucial consideration in many business and family disputes where privacy is paramount. Confidentiality allows the parties to avoid damaging their reputations or exposing sensitive information.
- Control and Flexibility: In court, the outcome is determined by a judge, and parties may feel that they have little control over the final decision. In contrast, out-of-court settlements, particularly mediation, give the parties involved greater control over the resolution. They can actively shape the terms of the settlement, which can result in solutions that are more satisfactory to both sides.
- Preservation of Relationships: Out-of-court settlements, especially those involving mediation or conciliation, can be more collaborative than adversarial court battles. This can be particularly important in family disputes, business partnerships, or labor issues where ongoing relationships are involved. ADR processes are often less confrontational, helping parties preserve their professional and personal relationships.
Challenges to Widespread Adoption
While the benefits of out-of-court settlements are clear, there are still several barriers to their widespread adoption in Pakistan.
Lack of Awareness and Trust: Many people in Pakistan remain unaware of the alternatives to traditional litigation or may not trust the process. There is a perception that legal disputes must be resolved in court, and people are often hesitant to explore ADR mechanisms due to uncertainty about their fairness or effectiveness.
Weak Institutional Framework: Although the legal framework for ADR exists in Pakistan, its implementation is often weak. The country’s mediation and arbitration institutions are underdeveloped, and there is a shortage of skilled mediators and arbitrators. Additionally, the legal infrastructure needed to support ADR, such as enforcement mechanisms for arbitration awards, is still evolving.
Cultural Factors: Pakistan has a diverse population, and cultural factors can influence the willingness of people to adopt ADR. In some regions, especially rural areas, there may be a reluctance to engage in structured negotiation or mediation due to traditional methods of resolving disputes. Tribal and local councils, known as jirgas, often handle disputes outside the formal legal system, but these methods may not always align with the principles of fairness and justice.
Legal and Regulatory Gaps: While ADR has gained legal recognition in Pakistan through various laws, such as the Alternative Dispute Resolution Act, 2017, there are still gaps in enforcement and regulation. For instance, while arbitration awards are enforceable in Pakistan, the system for enforcing mediation agreements is not as robust, and there is a lack of standardized procedures for ADR across different regions.
Government Initiatives and the Role of the Judiciary
The government and judiciary in Pakistan have recognized the importance of out-of-court settlements, and several initiatives have been undertaken to promote ADR. The Supreme Court of Pakistan has actively encouraged the use of mediation and arbitration to clear the backlog of cases, and various lower courts have started implementing mediation programs as part of their case management processes.
Moreover, Pakistan’s Punjab and Khyber Pakhtunkhwa provinces have introduced mediation and conciliation centers in their court systems to facilitate dispute resolution before cases enter formal litigation. These initiatives are a step toward institutionalizing ADR and making it a more integral part of the country’s judicial culture.
Out-of-court settlements are becoming an increasingly attractive option for resolving disputes in Pakistan, offering a quicker, more affordable, and less adversarial alternative to the slow and often costly court system. While challenges remain, including a lack of awareness and an underdeveloped institutional framework, the growing emphasis on ADR reflects a shift towards a more modern, efficient, and accessible legal system. If supported by effective policies, infrastructure, and public awareness campaigns, out-of-court settlements have the potential to significantly improve the delivery of justice in Pakistan, reduce the burden on courts, and foster a more cooperative approach to conflict resolution.