Introduction of Alternative Dispute Resolution (ADR) Mechanism
Reform IDS203
Reform Description
Introduction of Alternative Dispute Resolution (ADR) Mechanism

Before: There was no Alternative Dispute Resolution mechanism in place, therefore, courts were the only forum to resolve the business-related disputes.

After: Sindh Government has made amendment in The code of civil procedure (Act#V of 1908) “The Code of Civil Procedure (Sindh Amendment) Act 2018 to introduce Alternative Dispute Resolution mechanism.

SectorAll Sectors
BeneficiariesAll Businesses
Jurisdiction/ LocationSindh
DepartmentProvincial Judiciary of Sindh Courts
Date of Implementation25-02-2019
DetailsDifficulty In many commercial disputes, out-of-court settlement is possible but there is no formal mechanism of Alternative Dispute Resolution in place. Businesses have to resort to Courts for settlements of their disputes, which is costly and time consuming.
Analysis It was realized that for speedy disposal of disputes, the Alternate Dispute Resolution (ADR) system could be introduced by making legal enactment/ amendment and appointment of arbitrators, which is also recognized as a global best practice.
Solution In line with the reform proposal and international best practices of dispute resolution, the Provincial Cabinet of Sindh approved the amendment in The Code of Civil Procedure Act (2018) through insertion of Alternative Dispute Resolution.
Evidence