Justice Mansoor emphasized that economic benefits of resolving disputes through arbitration are crucial

Court Reporter

ISLAMABAD: The Supreme Court’s senior-most judge, Justice Mansoor Ali Shah, has issued a written judgment highlighting the economic importance of resolving disputes through Alternative Dispute Resolution (ADR).

In his judgment, Justice Mansoor Ali Shah emphasized that the economic benefits of resolving disputes through arbitration are crucial. He noted that arbitration is a low-cost, effective, and confidential method that not only reduces the burden on domestic courts but also enhances business productivity.

The senior-most judge of the Supreme Court wrote that arbitration offers a timely resolution of disputes, which minimizes business disruptions. The ability to enforce international arbitration decisions strengthens trade and business.

The Supreme Court stated that a stable and predictable dispute resolution system through arbitration fosters investor confidence. Arbitration makes the country an attractive destination for foreign investment.

The judgment also mentioned that the Law and Justice Commission had prepared a draft of a new Arbitration Act, which was presented to the federal government through the Ministry of Law and Justice on May 2, 2024. This draft seeks to modernize the outdated arbitration system, which has remained unchanged since 1940.

The judgment expressed hope that the federal government would swiftly implement the new arbitration law, keeping in mind the broader economic interests of the nation, so that the public can benefit from an effective and modern dispute resolution system.

Justice Mansoor Ali Shah directed that a copy of the decision be sent to the Attorney General’s office for correspondence and as a reminder to the relevant ministry.