Justice Mansoor Ali Shah, the senior puisne judge of the Supreme Court, suggested on Thursday the establishment of a separate system for handling commercial cases, stating that applying arbitration rules to commercial cases could help reduce the backlog of cases in courts.
Speaking at an event on ‘Restructuring of Arbitration Laws in Pakistan’ at the Federal Judicial Academy (FJA), Justice Shah observed that court cases often linger due to strikes and adjournments. He emphasized the importance of changing the mindset that leads people to bring every case to court.
Justice Shah highlighted that commercial cases are prioritized globally. He emphasized the need for a separate system to hear commercial laws in high courts and the Supreme Court, as well as the establishment of Alternative Dispute Resolution (ADR) centers in districts.
He urged the government to promptly enact a law on arbitration in commercial disputes. He mentioned that a draft of the Arbitration Act had been circulated worldwide for feedback, adding, “Today is May 2nd, and we will see how long it takes to enact this law.”
Justice Shah noted that there are currently 2.4 million pending cases in courts across the country, with 80% of them in the district judiciary. Additionally, he stated that thousands of cases are filed in district courts daily, contributing to the backlog in high courts.
Citing a World Bank report, Justice Shah mentioned that 80% of cases in Pakistani courts are delayed due to adjournments. He urged against strikes during court hours, suggesting they be held after court sessions.
Finance Minister Muhammad Aurangzeb mentioned that, in the absence of arbitration laws, foreign investment companies used to approach international courts against Pakistan. With the Arbitration Act 2024, disputes would be resolved locally, potentially increasing investment.
Senior lawyer Makhdoom Ali Khan highlighted that robust arbitration laws are crucial for international trade and investment, noting that countries with advanced arbitration laws are ahead of Pakistan by 20 to 30 years.
Attorney General for Pakistan (AGP) Mansoor Usman Awan emphasized that economic development hinges on resolving business disputes, urging the law minister to expedite the enactment of the Arbitration Act Bill.
Law Minister Azam Nazir Tarar emphasized that parliament holds the primary responsibility for the law, stressing the need to protect both foreign investors and the domestic business community.
