Decree based upon statement of mediator cannot be challenged: LHC

LAHORE: The Lahore High Court (LHC) held that the decree based upon statement of a mediator cannot be challenged by any party in appeal unless the same was the result of fraud or misrepresentation. The court observed that mediation is a modern, flexible and globally recognised method of dispute resolution, particularly in commercial and corporate matters, aimed at saving time, cost and judicial resources. The court passed this order in a petition of one Muhammad Razzaq challenging the decision of a trial court which decided a property matter in terms of the referee’s decision. READ ALSO: Mediator-based decree binding unless fraud proven: LHC The petitioner also challenged the decision of the appellate court remanding the case to trial court for recording evidence and afresh adjudication. The court said that the parties, with their free consent, mutual understanding and consciously elected to resolve their dispute through a mediator. Having availed themselves of such a mode of adjudication, were bound by the outcome thereof, subject to its verification, which in the present case was duly carried out by the referee himself before the trial court, the court noted. The court observed that the verification by the mediator himself lent full credence to the decision, thereby elevating it to an unquestionable and reliable determination of the dispute between the parties. The court said, the appellate court, instead of giving due weight to the consensual mechanism adopted by the parties and the verified verdict of the mediator/referee, remanded the matter to the trial court on the grounds which are, neither legally sustainable nor factually justified. The court observed that any attempt to wriggle out of the agreed course, after having derived or sought to derive benefit therefrom, is legally untenable and liable to be discouraged. In such a state of affairs, even to challenge the decree by preferring an appeal was not tenable, the court remarked. The court; therefore, declared the impugned order of the appellant court as arbitrary and capricious and held that the trial court was fully justified in placing reliance upon the referee’s decision. Copyright Business Recorder, 2026

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