Government brings necessary change into the Code of Civil Procedure and also in Artharin Adalat Ain, 2003 for money loan recovery. After new Amendment of the Act in 2010 this Act provides mediation as single mode of alternative disputes resolution. Chapter 5 and section 22 to 25, 38, 44A provide provisions of mediation in Artharin Adalat Ain 2003.
Process of Alternative Dispute Resolution in Artharin Adalat Ain:
Mediation is compulsory and it begins after defendant files written statement. This Act adopted court annexed ADR mechanism both pre-trial and post-trial stages in a suit. The stages are-
1. Mediation after filing written statement; Sec- 22
2. Mediation before pronouncement of judgment ; Sec- 23
3. Mediation at execution stage of the suit; and Sec-38
4. Mediation at appellate or revision stage. Sec- 44A
After filing written statement the Court by adjourning the hearing shall order for mediation to settle their dispute, or if all the contesting party through application to the Court wishes to settle their dispute through mediation, the Court shall so mediate. Sec- 22(1)
Appointment of Mediator:
Parties by their mutual agreement or their lawyer with their consent may appoint following person as mediator-
a. Another lawyer who is nor engaged with any of the parties;
b. Retired judge;
c. Retired financial institutions or bank officers; or
d. Other persons deem to be suitable for this act.
But if a person holding office of profit in service of republic shall not be eligible for appointment as mediator. Sec-22(2)
The parties to the dispute by their mutual agreement determine the charge or fees of mediator. Sec- 22(3)
After appointment of mediator the parties must inform the name of mediator to the Court within 10 days. If the fails to appoint within this time the Court shall appoint mediator. The mediation shall be concluded within 60 days from the day on which the court so informed about the appointment of mediator. If they fails to conclude the dispute, the court in its own motion or joint prayer by the parties can extended time not exceeding 30 days. Sec-22(4)
If the result is compromise of the dispute, the term of such agreement shall be send to the Court, bearing the signature or thumb impression of the parties as executants. Sec-22(6)
After that the Court shall pronounced a decree according to Order 23 of Code of Civil Procedure, 1908. Sec-22(7)
When the mediation fails to produce any compromise, the Court shall proceed with the hearing of the suit from the stage where the decision of mediation was taken. Sec-22(8)
The proceeding of mediation under this section shall be confidential and it will be inadmissible in any subsequent proceedings. Sec-22(9)
No appeal or revision shall lie against any order or decree passed by the Court in pursuance of settlement of disputes under this section. Sec-22(11)
Mediation in Post-trail stages:
If the mediation process fails under subsection 22, the both parties with the permission of Court may apply for mediation again at any stage before pronouncement of judgment under section 23.
Mediation at execution stage of the suit:
According to sec 38 at the stage of execution of decree the parties may settle the dispute through mediation by inform to the Court.