Punjab Assembly receives ordinance to set up dispute resolution authority

The Punjab Alternative Dispute Resolution Ordinance 2026 has been presented in the Punjab Assembly and referred to the assembly's Standing Committee on Home Affairs. Once the committee reports, the bill is to be passed by the Assembly, after which the ordinance will become law, Express News reported.

The ordinance provides for an authority to reduce the backlog of court cases and resolve disputes through an alternative system. Disputes would be settled through arbitration, conciliation and mutual negotiation. The Governor of Punjab approved the ordinance on October 6 for 90 days.

According to Minute Mirror, the Punjab Alternative Dispute Resolution Authority (ADRA) would be an autonomous body with headquarters in Lahore, and the ordinance would repeal the Punjab Alternative Dispute Resolution Act 2019. The Chief Minister of Punjab would be its chairperson, with a director general and other experts appointed to support its work. Its expert panel would include retired judges, former government officials and specialists in civil, criminal, taxation and corporate matters.

The authority would supervise the dispute resolution system, approve and renew arbitrators, centres and training institutions, and register, license and monitor them across Punjab. It would give the list of approved arbitrators and centres to the Registrar of the Lahore High Court. Disputes would be resolved by a judge nominated by the Lahore High Court, approved arbitrators or approved centres.

Pending court cases may be sent to the authority with the consent of the parties. Minute Mirror reported that courts would have to refer specified civil cases listed in Schedule-I to ADR within 15 days after the defendant submits a written statement. Disputes must be resolved within 30 days, extendable to a maximum of 60 days on a joint application by the parties.

The matters covered include family disputes, child custody and guardianship, inheritance, partition of jointly owned property, succession, commercial contracts, damages, recovery of movable property, professional negligence, consumer complaints and copyright. Minute Mirror said compoundable criminal offences under Section 345 of the Code of Criminal Procedure, and specified disputes involving the public, government bodies and companies, would also be covered.

Parties may take part personally, through authorised representatives or through lawyers, and overseas Pakistanis may join by video link. In disputes involving women, female arbitrators or mediators will be preferred. Fees and expenses would be shared by the parties by mutual consent, and proceedings would remain confidential.

After a settlement, ADRA would issue a notification so the court can pass a judgment and decree in line with it. The decree would have the same legal status as a court decree. The provincial government expects lower litigation costs, less pressure on courts and a cleared backlog, according to Minute Mirror.