Justice market is not obsolete from the issue of increasing transaction cost and pending cases, which increases burden on Government and also on public. In this study the concept of transaction cost in the delivery of justice is explored and estimated. The study has adopted mix approach using qualitative as well as quantitative methods to estimate the transaction cost of justice to the end users in Peshawar high court. For qualitative analysis, this study has utilized the support of three FGDs with thirty lawyers. In uantitative analysis, the researcher has employed three econometric models. The study found that the key determinants of justice transaction cost are: Case duration, lawyer fee, litigant’s income, meeting with Jirga members, changing lawyer, bribery and special reference. It was also found that bargaining for achieving justice increase the transaction cost. The study also found that paying the transaction cost of justice is too expensive for low income people living in poverty trap. This research also found that the existing national judicial policy lacks inclusive capacity to assess poor and low-income people for their legal needs. This thesis recommends the revision of National judicial policy in order to cater the issue of transaction cost and establish efficient alternatives for the delivery of inexpensive justice to indigent people. Supervisor:- Dr. Karim Khan