Ahmed Jawad Butt
Alternate Dispute Resolution (ADR) is a process used to settle disputes outside of the traditional court system. ADR provides an effective and efficient means of resolving business conflicts without the high costs and lengthy timeframes associated with court proceedings. Here are some reason why ADR is a more effective tool then court proceedings in settling business disputes. Cost – One of the most significant advantaged of ADR is its cost. Unlike court proceedings, ADR methods are generally less expensive.
Traditional court cases can result in high legal fees and other costs like travel expenses and fees. On the other hand, ADR methods can provide a more affordable way to handle disputes outside of court with less legal representation required. Speed—time is money, and this is especially true in business. Resolving disputes quickly means businesses can go back to focusing on their operations, which is why ADR methods are more effective than court proceedings in settling business disputes. Litigation can be a lengthy and time-consuming process, which can result in businesses delaying their operations or shutting down altogether. In contrast, ADR methods focus on quick resolutions that are beneficial to both parties.
Confidentiality – Confidentiality is another critical advantage of ADR. It is a private process that protects the company’s reputation and confidentiality. Court proceedings are conducted in public, meaning that sensitive information is exposed to the public, which could ultimately harm the company, reputation. ADR ensures that the dispute remains confidential. Flexibility: ADR methods have a higher degree of flexibility compared to court proceedings. Companies can tailor the process to their individual needs and preferences, which is more challenging to do in the court system. Parties can also choose the mediator or arbitrator based on their experience, skills, or reputation in the industry. Mutual Agreement: ADR methods encourage parties to work together to resolve disputes, unlike court proceedings, where the decision-making process is exclusively in the hands of the court, ADR methods enable companies to come to a mutual agreement that is beneficial to both sides. Businesses can maintain relationships while also resolving disputes in a way that is acceptable to all parties involved. In conclusion, alternative dispute resolution (ADR) has been recognized as an extremely effective means of settling disputes, particularly in the business world. It is a more cost-effective, confidential, and flexible approach to resolving conflicts between parties. It even fosters and encourages mutual agreement that is more beneficial to all parties involved. With these many benefits, businesses should consider the option of ADR instead of court proceedings to settle their disputes swiftly, privately, and efficiently while maintaining healthy business relationships with other companies.
This tool was effectively adopted during the era of Mr Justice Mansoor Ali Shah, then Chief Justice of the Lahore High Court and now an honourable judge of the Supreme Court of Pakistan, and ADR centers were opened in the court premises of the Punjab Judiciary. Still, after his elevation to the Supreme Court, this step became an undone crave. In the critical economic conditions of Pakistan, a business-friendly policy in the judicial system of Pakistan is the need of the hour.
The recovery of business money has become a core issue in the failure of building confidence in the business community to invest more to strengthen the economy. Our adjudication process lingers the cases to a fatal level which demotivates local and foreign investors. We hope our judiciary will play a constructive role by implementing the effective ADR policy like Mr Justice Mansoor Ali Shah did in the past for a prosperous Pakistan.
The writer is a law graduate columnist and annalist. He can be reached at ahmedjbutt85@gmail.com.
