The fundamental structure of the current formal judicial system of Pakistan has been taken from the medieval period and even before. Panchayat system has been basic and critical informal judicial system for the villages of Pakistan for justice provision as the decentralized power, and local governance and it has never been completely adopted by national or provincial governments. This research aimed at a comparative study of Panchayat System and state’s judicial system in Punjab, Pakistan. The study was confined to three randomly selected representative districts of Punjab. 14.4% of the respondents claimed speedy justice from Panchayat. 10.8% of respondents having primary level education said that the state formal judicial system is more expensive than Panchayat system. Surprisingly, 5.8% of the government employees also favored Panchayat system and 5.8% of non-government employees favored state judicial system for delivering reliable and affordable justice.