Punjab ADR ordinance moves closer to becoming permanent law

Punjab has taken a significant step towards reforming its justice system, as the Punjab Alternative Dispute Resolution Ordinance 2026 moves

LAHORE: Punjab has taken a significant step towards reforming its justice system, as the Punjab Alternative Dispute Resolution Ordinance 2026 moves through the legislative process following its approval by the Governor. The initiative aims to provide citizens with faster, more affordable and accessible ways to settle disputes without lengthy court proceedings.

The ordinance, approved by the Governor of Punjab on October 6 for a period of 90 days, was presented in the Punjab Assembly on October 28 and subsequently referred to the Standing Committee on Home Affairs for further consideration.

After the committee submits its report, the proposed legislation will be taken up by the Assembly for passage. Once the legislative process is completed, the framework is intended to establish a permanent and more effective system for alternative dispute resolution (ADR) across the province.

The new ordinance will repeal the Punjab Alternative Dispute Resolution Act 2019, which faced challenges related to implementation, monitoring and the absence of strict timelines for resolving disputes.

Establishment of Punjab ADR Authority

Under the proposed framework, the Punjab Alternative Dispute Resolution Authority (ADRA) will be established as an autonomous body responsible for overseeing the system. The Chief Minister of Punjab will serve as its chairperson, while a director general and other experts will be appointed to support its operations.

The authority’s expert panel will include retired judges from the Supreme Court, high courts and subordinate judiciary, former government officials, and specialists in civil, criminal, taxation and corporate matters.

Its headquarters will be located in Lahore. The authority will supervise the registration, licensing and monitoring of ADR centres, training institutions and service providers operating across Punjab.

Faster Dispute Resolution and Key Provisions

The proposed law will promote mediation, conciliation and mutual negotiation as alternatives to conventional litigation. Under its provisions, courts will be required to refer specified civil cases listed in Schedule-I to ADR within 15 days after the defendant submits a written statement. Pending cases may also be referred with the consent of the parties.

The ordinance sets a 30-day deadline for resolving disputes, which may be extended to a maximum of 60 days upon a joint application by the parties.

Once a settlement is reached, ADRA will issue the relevant notification, enabling the concerned court to pass a judgment and decree in accordance with the settlement. The resulting decree will carry the same legal status as a court decree.

The framework also provides for a women-friendly approach, with female mediators preferred in disputes involving women. Overseas Pakistanis and other parties will be able to participate through video links and other modern communication facilities.

Confidentiality is another key feature, as proceedings will remain confidential and privileged, subject to the ordinance’s applicable provisions regarding consent and the use of information as evidence.

Disputes Covered Under the Framework

The proposed system will cover a wide range of matters, including family disputes, child custody and guardianship, inheritance, property partition, succession, commercial agreements, damages, recovery of movable property, professional negligence, consumer complaints and copyright issues.

It will also extend to compoundable criminal offences under Section 345 of the Code of Criminal Procedure, along with specified disputes involving the public, government bodies and corporate entities.

The provincial government expects the initiative to reduce litigation costs, ease pressure on courts and help clear the growing backlog of cases. By introducing defined timelines and structured settlement procedures, the new framework aims to make dispute resolution more efficient for citizens across Punjab.