Govt working on incorporation of ADR in existing laws: Minister

The government is working on incorporation of Alternative Dispute Resolution (ADR) in different existing laws in order to make the dispute resolution system easier and less time-consuming, Law Minister Anisul Huq has said.

He also praised the Bangladesh International Arbitration Centre (BIAC) for its role in settling commercial disputes out of court in last seven years.

The minister made the observations while speaking as the chief guest at a ceremony organised marking the seventh founding anniversary of the BIAC recently.

Chairman of BIAC Mahbubur Rahman moderated a seminar titled "mainstreaming the use of ADR clause in commercial agreements: challenges and opportunities" on this occasion.

Bangladesh Bank governor Fazle Kabir attended the ceremony as the special guest. Chairperson of National Company Law Appellate Tribunal, India Justice Sudhansu Jyoti Mukhopadhaya, Chairman of the Association of Bankers, Bangladesh (ABB) Syed Mahbubur Rahman, Barrister Ajmalul Hossain QC, and Country CEO of Standard Chartered, Bangladesh Naser Ezaz Bijoy also attended the function, among others.

In his speech, Mr Fazle Kabir urged all scheduled banks to take effective initiatives to include ADR in loan commercial contracts.

Mr Sudhansu Jyoti mentioned the Insolvency and Bankruptcy Code introduced two years ago in India, which forces parties to go for arbitration as prerequisite to invoke liquidation clause.

"Bangladesh needs ADR-friendly legislation reforms and engage institutions like BIAC so that international commercial arbitration cases from abroad can be held in Bangladesh instead of only being directed to Singapore," he said.

Barrister Ajmalul said mere inclusion of ADR clauses in contracts is not enough unless laws are amended to make their enforcement easier.

Addressing the programme, Mr Syed Mahbubur Rahman opined that mandatory provision of arbitration and pre-litigation mediation must be included in our legislation.

Mr Naser Ezaz opined that courts should take punitive measures against the parties that refuse to resolve disputes amicably through ADR.

Dr M Masrur Reaz of IFC-World Bank Group highlighted the relevance of BIAC for quality FDI to come in for long-term financing in Bangladesh.

Barrister Sameer Sattar urged the government to make further amendments to existing laws in order to mainstream ADR in the country.

Advocate Anuroop Omkar, Mediator and Director of Bridge Mediation and Consulting Pvt. Limited in India, stressed the need for collaboration through arbitration-mediation where both parties are equally benefitted.

Country Manager for Bangladesh IFC-World Bank Group Wendy Werner mentioned that Bangladesh has a fairly weak position in terms of enforcing contracts in the World Bank's Doing Business Index and needs to improve for increasing investments into the country.

BIAC's chief executive officer (CEO) Muhammad A. (Rumee) Ali said BIAC has been trying to attract banks, corporate and educational institutions to adhere to the ADR methods for last seven years.

In concluding remarks, BIAC Chairman Mahbubur Rahman said his organisation along with Bangladesh Bank and ABB is working on a draft guideline for the banking industry to resolve commercial and financial disputes, using ADR.

He also announced that the office will relocate to Paribagh which will be closer to the Supreme Court.

Former chief justices and justices, diplomats, senior lawyers, government high officials, managing directors of banks, distinguished business leaders, representatives from foreign missions and international organisations were also present.

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