Speakers focus on user-friendly arbitration act to attract FDI

FE Team | Published: October 27, 2018 22:55:16

Justice Shahidul Karim stressed on Saturday the need for an amendment to the existing Arbitration Act 2001 to make it user-friendly so that it can help spur the flow of foreign direct investment (FDI).
Speaking at a consultation session as the chief guest, the judge of the High Court Division of the Bangladesh Supreme Court welcomed the initiative of the Law Commission to amend the Arbitration Act 2001, says a statement.
He expressed his hope that the proposed Arbitration (Amendment) Act 2018 would be user-friendly.
He also expressed his hope that after passage of the Act the stakeholders would enormously benefit from it and that more foreign investments would pour in, contributing to overall development of the economy.
Bangladesh International Arbitration Centre (BIAC) organised the National Consultation Session on the proposed Arbitration (Amendment) Act 2018 at the Conference Hall of the Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI).
The session was presided over and moderated by Mahbubur Rahman, Chairman of BIAC and President of International Chamber of Commerce- Bangladesh (ICC-B).
In his speech Mahbubur Rahman said the  arbitration framework in the country would be more attractive for both Bangladeshi and international clients, once the amendment to the Act is made making it updated in line with the international best practices.
It would definitely reduce the cost and time of business dispute resolution, he said.
BIAC CEO Muhammad A. (Rumee) Ali said the proposed amendment to the Act is aimed at addressing the twin and very important objectives of the government: 'Access to Justice' that involves one of the Sustainable Development Goals (SDGs) to which Bangladesh is a signatory, and the issue of the very low ranking in 'Enforcement of Contracts' in the global Doing Business Index.
In the keynote speech, Barrister Khandoker MS Kawsar elaborated how Bangladesh can be one of the top seats of arbitration in Asia by 2028.
He presented a comparative study of arbitration statutes in India, China, Singapore, Hong Kong and South Africa.
He said the proposed amendment to act would help Bangladesh grow as a neutral, accessible, predictable and balanced seat of arbitration where disputing parties from different nationalities will feel comfort to arbitrate commercial disputes.
He also highlighted the BIAC's capacity as a unique facilitator of arbitration in the country.
Panel discussant Fowzul Azim, Chief Research Officer at the Law Commission of Bangladesh, highlighted the exigencies that led the Law Commission to initiate a draft to amend the Arbitration Act 2001.
He said the experience about the Act in the last 17 years needed to be reviewed in order to practise arbitration outside the court so that the overburdened judiciary could function better, especially disputes between Bangladeshi and expatriate parties could be resolved maintaining international standards.
He said the Law Commission sought opinions on the proposed Arbitration (Amendment Act) 2018 from a number of stakeholders and users including BIAC.
Speaking on the occasion, Mubina Asaf, Head of Legal and External Affairs, British American Tobacco Bangladesh, pointed out issues faced by potential arbitrating parties, including cost, time to complete the process, court intervention during the process of arbitration and enforcement of arbitral awards.
AKM Iftekhar Ahmad, Consultant, Green Delta Insurance Co. Ltd., in his speech said in policies written on the indemnification basis, the insurer reimburses the insured for claims and an Arbitration Clause is there in the Indemnification Contract to assess the quantum of loss. In this regard appropriate arbitral rules are required, he opined.
Md. Golam Kibria, Director (Training), Judicial Administration Training Institute (JATI), said the enforcement of award as per the Code of Civil Procedure cannot be appreciated at all.
In the country it is said, "real misery begins after any party obtains a decree from Civil Court". This is also true in respect of arbitral award. In this regard the procedure of enforcement of decree under Artha-Rin-Adalat Ain, 2003 may be followed and necessary amendment in this regard should be made, he added.
M A Akmall Hossain Azad, Director, BIAC, in his observation emphasised the need for a specific provision in the Arbitration (Amendment) Act 2018 for execution of its own Award by an Arbitral Tribunal.
He also made a few recommendations on behalf of BIAC for the proposed amendment to the arbitration law.
The discussants also included Md. Sanowar Hossain, Registrar at Department of Patents, Designs & Trade Marks, Dr. Mohammad Mohiuddin, Joint Secretary, Legislative and Parliamentary Affairs Division, Barrister Margub Kabir, Associate, Huq and Company, Tauhidur Rahman Khan, Director, Bangladesh Investment Development Authority (BIDA), Barrister Forrukh Rahman, Head of Chambers, Rahman's Chambers, Barristers & Advocates, Md. Golam Sarwar, Joint Secretary, Law and Justice Division, Golam Kibria, Director (Training), Judicial Administration Training Institute (JATI), Md. Zulfiquar Ali, Legal Affairs Division, Dhaka Bank Ltd., and Christabel Randolph, Head of Legal, Marico Bangladesh Ltd.