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Mughals

Mughals Pakistan v. EOBI

In Mughals, the dispute related to the Appellant’s liability for contributions under the Employees Old Age Benefits Institution (EOBI) scheme for employee-based contributions, leading to prolonged litigation.

Held: Employment and benefits disputes are more effectively resolved through ADR, particularly mediation, to ensure timely and cost-effective outcomes.
Mediation was recognized as a fundamental right within the framework of access to justice.

Court’s Observations:
“Arbitration is a forum of the parties’ own choice; its decision should not be lightly interfered with by the court.”

“Mediation is not merely an alternative to litigation but a complementary and necessary component of the justice system.”

“Access to justice includes the right to have disputes resolved in a timely and efficient manner; mediation, as a faster and cost-effective alternative, satisfies this fundamental aspect of justice.”

“Mediation is evolving as a powerful mechanism for conflict resolution, bridging divides with creativity and fostering harmonious solutions.”

“Courts should not only encourage mediating more and litigating less but also exhibit a pro-mediation bias, prioritizing mediation as the preferred method of dispute
resolution.”

PLD 2025 SC 1