SC judges suggests separate commercial courts

Justice Mansoor Ali Shah, the senior puisne judge of Supreme Court, called on Thursday for creating a separate system for the hearing of commercial cases saying that if the arbitration rules were applied to the commercial cases, the backlog of cases in the courts would be reduced.

Addressing a function on ‘Restructuring of Arbitration Laws in Pakistan’ at the Federal Judicial Academy (FJA), Justice Shah noted that court cases drag on because of strikes and adjournments. He underscored the need for changing people’s mindset that they did not need to take every case to the courts.

Justice Shah said that commercial cases were given priority all over the world. “There is a need to create a separate system for hearing commercial laws in the high court and the Supreme Court,” he stressed. He also underscored the need for creating Alternative Dispute Resolution (ADR) centres in the districts.

He urged the government to enact a law on arbitration in commercial disputes soon. He told the participants that a draft of the Arbitration Act was sent around the world and public opinion was sought. “Today is May 2nd and we will see how long it takes to enact this law,” he said.

He said that 2.4 million cases were pending in courts across the country – 80% of the cases were pending in the district judiciary. Besides, he added: “Thousands of cases are filed in district courts every day and every month, 4,000 cases are added to the high courts’ backlog.”

According to a World Bank report, Justice Shah said, 80% of cases in the Pakistani courts were delayed because of adjournments. “Cases drag on because of strikes and adjournments. Go on strike in the afternoon, do it in the evening, go in front of the TV but don't go on strike during court time.”

On the occasion, Finance Minister Muhammad Aurangzeb said that in the absence of arbitration laws in the country, foreign investment companies used to approach international courts against Pakistan. After the Arbitration Act 2024, he added, disputes would be resolved here and investment would increase.

Earlier, senior lawyer Makhdoom Ali Khan said that international trade and investment was not possible without the best arbitration laws. He told the participants that the countries working on arbitration laws were 20 or 30 years ahead of Pakistan.

Addressing the ceremony, Attorney General for Pakistan (AGP) Mansoor Usman Awan said that economic development could not take place without guaranteeing the resolution of business disputes. He requested the law minister to work on enacting the Arbitration Act Bill as soon as possible.

Law Minister Azam Nazir Tarar said that the primary responsibility regarding the law lied with parliament. He stressed the need for protect both the foreign investors and the domestic business community.