Legal Arbitration in Pakistan

Legal Arbitration in Pakistan is one of the most underrated (whilst being the most cost-effective and time-effective method) of resolving legal disputes in Pakistan. Legal Arbitration can be utilized at any stage of a legal proceeding in Pakistan but is most effective at the beginning of any potential dispute, and can (in some cases) be resolved in a settlement before a trial starts.

Our Legal arbitration services in Pakistan consist of negotiating with the parties involved with the view of resolving the matter out of court; whether the matter is related to property, business dealings, family cases like divorce or child custody, or debt collection. In this article, we will discuss the different ways that Legal arbitration takes place, with the usual outcomes.

“The Supreme art of war is to subdue the enemy without fighting”

Sun Tzu (The Art of War)

Legal Arbitration is a form of “Alternative Dispute Resolution” where both parties enter into negotiations. Once they enter into negotiations, attempts are then made to resolve the matter by hearing both sides of the issue and trying to find a middle ground (or common ground) to resolve the matter amicably. It is not uncommon for Legal arbitration to take place during court proceedings, but we have found it to be more effective at the beginning.

The process of Legal Arbitration varies greatly on the grounds and merits of each case, as ultimately we are negotiating with both parties in an attempt to resolve the issue. When negotiating on behalf of our clients, although we try to get our clients what they want, we focus mainly on the overall objective of our clients rather than the process, so in some instances. we may guide our clients on their stance (or change their stance) if we see that their objectives would be met by it.

The Objectives

As this is a process of Negotiation, defining the objectives to begin plays a vital role in how we intend to tackle the matter. When both parties have a clear objective of winning, we first understand the current stances of both parties (Our clients and their opposing party) and try to establish where leverage would apply, along with which party has the clear advantage and disadvantage.

Once these are characterized, our next objective would be to distinguish the ideal outcomes for both parties involved. This stage requires genuine impartiality, and to show each party what risks and rewards they may face if they went head-on with each other versus settling the matter out of court and/or with limited involvement of the judiciary.

There are never set-in-stone methods for Legal Arbitration in Pakistan, but there are certain guidelines that could be adopted to achieve a successful round (or rounds) of negotiations. Let’s try to see how we would move forward as a general guide:-

  • Understand the matter of dispute.
  • Understand what both parties are involved in the dispute.
  • Understanding the positions of both parties involved.
  • Setting out realistic objectives, after discussing the potential pitfalls and/or successes.
  • Reach out to both parties to settle the matter whether ad hoc (where both parties can agree to enter arbitration mutually, and comfortably) or it can be administered (through a Dispute Resolution Center or an alternative platform).
  • Choosing an arbitrator, and ensuring that both parties will agree to their decision.
  • Openly negotiating, hearing both sides of the arguments informally and in a socially acceptable environment, with the ability to understand and adapt to each other’s grievances, and avoid insults or acts of defamation and character assassination.
  • Once common ground is agreed upon, we then try to conclude the arbitration and negotiations by writing it down with solid agreements from both sides.
  • Once adjudicated, the agreement is then drafted, and signed and guarantees may even be taken from both sides to ensure specific performance.

Legal Arbitration hosts plenty of benefits and disadvantages. Our Lawyers in Pakistan can discuss all these options with you depending on your circumstances. Here are the benefits of entering Legal Arbitration in Pakistan:-

  • Cost Effective
  • Time Efficient
  • Tends to be less aggressive and hostile
  • Incredibly Flexible
  • A far simplified process
  • Private and Confidential

The Drawbacks

As great as Legal Arbitration in Pakistan, it doesn’t always work for everyone. The reasons always vary, but engaging in the exercise has never negatively affected anyone. Here is a list of some drawbacks:-

  • Enforcing the agreement could be tedious
  • Results may vary depending on the circumstances

Whether you are in Pakistan or abroad, we can help! Simply send us a message via WhatsApp and we will gladly discuss your legal matter with you. Contact us via WhatsApp on 0308 5510031 within Pakistan or 0092 308 5510031 from out of Pakistan.

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