PRMI Reform View

Introduction of Alternative Dispute Resolution (ADR) Mechanism
Reform ID		P194
Reform Description		Introduction of Alternative Dispute Resolution (ADR) Mechanism Before: Businesses could only resolve disputes through the courts as there was no Alternative Dispute Resolution Mechanism. After: “The Punjab Commercial Court Ordinance 2021 Section (3)” enables the establishment of an Alternative Dispute Resolution system in Punjab.
Sector		All Sectors
Beneficiaries		All Businesses
Jurisdiction/ Location		Punjab
Department		Law Department-Punjab/ Law and Parliamentary Affairs Department-Punjab
Date of Implementation		13-04-2021
Details	Difficulty	 In many commercial disputes, out-of-court settlements were possible but no formal mechanism of Alternative Dispute Resolution was in place.  All bbusinesses had to resort to Courts for settlements of their disputes, which was costly and time consuming.
	Analysis	It was realized that for speedy disposal of disputes, the Alternate Dispute Resolution (ADR) system can be introduced by making legal enactment/ amendment and appointment of arbitrators which is also recognized as global best practice.
	Solution	In line with the reform proposal and international best practices for dispute resolution, the Governor of Punjab has approved the Punjab Commercial Court Ordinance 2021.
Evidence		View Evidence