Evolving Arbitration in Pakistan: A New Era Under Judicial Transformation

Abstract

Arbitration is regarded as one of the best methods to settle the dispute through a semi formal way, outside the court. In Pakistan, although arbitration system is present yet there is no proper legislation to promulgate this system in the country as a substitute of litigation due to lack of proper procedure, conflict of laws and outdated nature of the Arbitration Act, 1940. The intervention of judiciary in the enforcement of awards has always been a challenge for arbitration in the country to make a proper place in the judicial structure of the country. The judicial trends regarding arbitration kept on changing, evolving and always created challenges for the smooth running of arbitrational system. Until the Recognition and Enforcement Act, 2011, there was no thorough legislation for enforcement or recognition of a foreign arbitral award and there always have been a confusion regarding the seat of arbitration by Pakistani courts. The cultural differences and unawareness of society especially the unknowingness of legal fraternity has been an obstacle for arbitration in the country.