-: KCDR :- News & Events

October 8, 2008-Karachi:
SBP told to mediate between banks and defaulters

The Sindh High Court advised the State Bank of Pakistan on Wednesday to provide for mediation between creditor banks and alleged defaulters in the loan recovery policy being formulated by it.

Recourse to alternative dispute resolution should help settle default cases expeditiously without resort to courts or use or threat of force by bank recovery teams, a division bench consisting of Justices Khilji Arif Hussain and Bin Yamin told SBP counsel Iqbal Haider when he stated that a uniform recovery policy was being worked out as desired by the court. A draft had been sent to the Pakistan Banking Council for its opinion and recommendations, Mr Haider informed the bench.

A division bench previously seized of a petition moved by a businessman against his harassment by bank recovery squads had directed the SBP to submit a list of defaulters of up to Rs5 million whose loans were written off and formulate a uniform policy to recover bad debts. The list was sought to ascertain the criteria for loan remissions but the production was later deferred and the SBP was asked to frame and submit a recovery policy for commercial banks.

According to petitioner Anwar Mahmood, he had availed credit card and personal loan facilities from several commercial banks. He claimed to have paid in regular instalments a substantial part of the principal amounts he owed to banks and said he only defaulted on marginal amounts when he suffered a loss on account of fraud committed by his business partner. He said he was entitled to debt relief.

The petitioner submitted through Advocates Tahmasap Razvi and Haider Imam Rizvi that he was always ready and willing to repay the outstanding debt but wanted some relief by way of rescheduling and readjustment in view of his business losses. The banks instead started sending recovery squads. He was threatened and insulted by the recovery squads at his residence and business premises. The police declined to register a complaint or provide him protection from the recovery men.

The bench adjourned the hearing to Nov 4 to enable the SBP to produce a recovery policy and extended the restraint order against the harassment or use of coercive measures against the petitioner.

Shujaat Ali Khan
DAWN-Newspaper
9th October 2008

September 1, 2008-Karachi:
KCDR launches Internship Program

Karachi Centre for Dispute Resolution (KCDR) is pleased to announce its Internship Program for law students and law graduates. In pilot phase of the Program, two law students have successfully completed their respective internships of two weeks.

The purpose of KCDR’s Internship Program is to create awareness among law students and law graduates on operations of an Alternate Dispute Resolution (ADR) Centre and benefits of ADR and mediation. It is expected that with regular intake of interns, ADR and mediation as an ADR mechanism will be better understood.

KCDR’s Internship application procedure includes submission of a letter of intent and curriculum vitae.

For submission of applications and request for further information, please contact KCDR on (+92-21) 5879209 or email at info@kcdr.org

June 30, 2008-Karachi:
Workshop for Judges of Sindh Held at National Law University, Karachi

Karachi Centre for Dispute Resolution (KCDR) and Access to Justice Program (AJP) held a workshop for Judges serving as family/civil judges in Sindh Province. The workshop is a joint KCDR, IFC and AJP initiative with the purpose of enhancing understanding and application of family mediation as an Alternate Dispute Resolution mechanism. The 3 days workshop ended on 30th June 2008 and had financial support from ADB and Ministry of Law’s Access to Justice Programme.

June 27, 2008-Karachi:
KCDR and Access to Justice Program Hold Three Days Workshop for Judges of Karachi

Karachi Centre for Dispute Resolution (KCDR) and Access to Justice Program (AJP) held a workshop for Judges serving as civil, family, senior civil judges and judicial magistrates in Karachi. The workshop is a joint KCDR, IFC and AJP initiative with the purpose of enhancing understanding and application of mediation as an Alternate Dispute Resolution mechanism. The workshop will end on 27th June 2008 and has financial support from ADB and Ministry of Law’s Access to Justice Programme.

ADR mechanism provides litigants and parties contemplating litigation opportunity to resolve their disputes out of court as mediation saves time and costs of parties concerned. Mediation as an ADR mechanism provides flexibility to the parties wishing to resolve their disputes out of court and is a voluntary process. Courts and parties can invoke Section 89-A (read with Order 10 Rule 1A) of Civil Procedure Code, 1908 and a dispute could be referred to KCDR. If a dispute is settled through mediation, the same could be converted into a Decree through relevant court procedures. With mediation as an ADR mechanism in place, it is expected that backlog of cases in courts will be reduced if parties opt for it.

IFC, which is the private sector arm of the World Bank Group, has helped setting up of KCDR in early 2007 as part of its Alternate Dispute Resolution (ADR) Project. KCDR is an out of court dispute settlement facility approved by High Court of Sindh. KCDR has on its rolls foreign accredited mediators who provide mediation services. KCDR also has select number of foreign accredited mediators who have been trained as master trainers.

June 7, 2008
KCDR and IFC Concludes 2-Day Training on Conflict Resolution

Karachi: Karachi Centre for Dispute Resolution (KCDR) in collaboration with International Finance Corporation (IFC), private sector arm of World Bank Group, successfully delivered a 2 day course on “Conflict Resolution” at Sheraton Hotel, Karachi on 6th and 7th June 2008.

The Course was designed for professionals working in the field of human resources and administration and who deal with disputes from time to time. The Course focused on conflicts, mediations, handling of disputes and process involved in mediations which will improve mediation skills of human resource professionals and others with administrative and managerial roles. Role plays were also practiced by course delegates so as to practically perform various roles in a conflict situation. The course attracted important delegates including representation from banking, chemical, foods, utility and legal sectors. The Conflict Resolution Course was designed by KCDR’s foreign trained Master Trainers who are leading professionals in their own right.

Mr. Justice ® Saed uz Zaman Siddiqiqui, former Chief Justice of Supreme Court of Pakistan and Chairman KCDR considers training as an important tool in development of understanding of conflicts and resolution of the same through mediation. Commenting upon the instant course, Justice Siddiqui said, “KCDR’s Conflict Resolution Course and other courses to be delivered reflect KCDR’s interest in working with professionals and building institutional capacity of organizations to mediate upon work place and other disputes”. He also appreciated IFC’s support and initiatives in making this course a success.

Navin Merchant, IFC’s ADR Programme Manager for Middle East and Africa, has also appreciated the efforts of KCDR in engaging clients and stakeholders in its role as a mediation and training facility. Reflecting on the progress of the Project in Pakistan so far, Ms. Merchant said, “We have made some significant strides in institutionalizing ADR and mediation in Karachi-Pakistan. However, more efforts and further interventions are required to bring attitudinal change in how people see ADR and mediation in resolving their disputes”.

KCDR was established one year ago by IFC’s Pakistan Alternate Dispute Resolution (ADR) Project. KCDR’s awareness among stakeholders, especially lawyers and litigants are leading towards increase in referral of cases from Courts in Karachi, individuals and businesses. Mediation facilities at KCDR favour all businesses, particularly; small and medium enterprises that do not wish to litigate a dispute and are keen to unlock their blocked assets caught up in litigation. KCDR in limited period of 1 year has received about 70 cases and through mediation process released about 17.6 million US dollars (approximately Rs. 1.7 billion), through qualified mediators assisting parties to resolve disputes, parties having successfully resolved their disputes have saved time and costs. It is pertinent to mention here that accredited mediators are neutral individuals with no interest in the case, have to abide by mediators code of conduct and keep contents of the whole dispute confidential. KCDR have been approved by Sindh High Court, Karachi, Pakistan as a mediation facility.