The 'Dehi Adalats' (Rural Courts) Bill, introduced by Law Minister Mir Saifullah, was passed by the Upper House through a voice vote after discussions.
The state assembly had passed the bill on October 8 through a voice vote.
The bill will now be sent to Governor N N Vohra for his assent.
The proposed legislation provides for setting up of village courts for providing access to justice to people at the grassroot level.
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