Alternative Dispute Resolution (ADR) in Islamabad

Mediation:

Mediation involves a neutral third party, the mediator, who facilitates communication and negotiation between the disputing parties to reach a mutually acceptable resolution. The mediator does not impose a decision but assists the parties in exploring options and finding common ground.

Process:

• Initial Meeting: The mediator meets with both parties to understand their perspectives and establish ground rules.
• Joint Session: Parties discuss their issues and interests in a controlled setting, often with the mediator’s guidance.
• Private Sessions: The mediator may conduct private meetings with each party to explore potential solutions and assist in crafting a settlement agreement.
• Agreement: If the parties reach a settlement, it is formalized in a written agreement, which may be legally binding.

Arbitration:

Arbitration involves submitting a dispute to one or more arbitrators who make a binding decision based on evidence and arguments presented by the parties. Arbitration proceedings are more formal than mediation but less formal than court litigation.

Process:

• Appointment of Arbitrator: The parties agree on a neutral arbitrator or panel of arbitrators to hear the dispute.
• Evidence and Arguments: Each party presents its case, including evidence and witnesses, to the arbitrator(s).
• Decision: The arbitrator(s) render a decision, called an award, which is usually final and binding on the parties.

Conciliation:

Conciliation is similar to mediation but often involves a more active role by the conciliator in proposing solutions and facilitating agreement between the parties. Conciliation aims to foster cooperation and reconciliation between disputing parties.

Process:

• Joint Session: The conciliator meets with both parties to identify issues and explore potential solutions.
• Shuttle Diplomacy: The conciliator may conduct private meetings with each party to convey proposals and bridge gaps.
• Negotiation and Agreement: Parties work with the conciliator to negotiate and finalize a settlement agreement.

Legal Framework:

The legal framework for ADR in Islamabad includes both statutory provisions and judicial support for ADR mechanisms. For example:

• The Civil Procedure Code provides for court-annexed mediation in civil cases, allowing courts to refer cases to mediation proceedings.
• The Arbitration Act, 1940, governs arbitration proceedings and enforcement of arbitral awards in Pakistan, including Islamabad.

ADR Centers and Institutions:

Several ADR centers and institutions operate in Islamabad, providing facilities and services for mediation, arbitration, and conciliation. These include private ADR firms, chambers of commerce, and government-established bodies such as the Centre for Excellence in Islamic Finance (CEIF) at the Institute of Business Administration (IBA).

Benefits of ADR:

• Cost-Effectiveness: ADR is often less expensive than litigation, as it involves fewer formalities and legal fees.
• Timeliness: ADR processes can be quicker than court proceedings, allowing parties to resolve disputes in a more timely manner.
• Confidentiality: ADR proceedings are generally confidential, protecting the privacy and reputations of the parties involved.