Alternative dispute resolution for business

The launching of Bangladesh International Arbitration Centre (BIAC) at the initiative of International Chamber of Commerce, Bangladesh (ICC-B) in partnership with the country's two leading trade promotion organisations - the Metropolitan Chamber of Commerce & Industry (MCCI) and the Dhaka Chamber of Commerce & Industry (DCCI) -- is a welcome move for institutionalising the alternative dispute resolution (ADR) process. Set up with the funding support of the International Finance Corporation (IFC) -- the private sector arm of the World Bank -- the UKAid and the European Union (EU), it is the first ever mechanism to find settlement of business disputes through mediation and consultation between the litigants directly with the help of an arbitration body. Business is a dynamic area where regularly all kinds of discords, many of them legal ones, can be expected to crop up. The traditional approach, so far, has been to take them to the country's already overburdened court systems with too many cases of a varied nature, involving civil and criminal matters as well as business ones. The legal system in Bangladesh has not earned yet a positive distinction for handling properly and timely the adjudication of all sorts of cases that come before it. Thus, some cases are not blessed with verdicts sometimes even in the lifetime of an accuser and he or she may not live to see the verdict let alone get any benefit from it. Reforms of the legal system are underway and the same could lead to appreciable reduction in the backlog of unresolved cases after a period of some years. But considering the special nature of business activities, it should be obvious that such a very slow way of resolution of disputes leads, more often than not, to raising the costs of doing business, both in terms of time and money. In most cases, the litigants are in dire need of the fastest court decision to even proceed with their keeping commitments to different parties, or, to find relief from declaration of remedies, or, to timely frustrate actions on them by third parties. Unable to get quick decisions pertaining to these areas and more, businesses entangled in court disputes sometimes have to pay through their nose for no fault on their part but for the fact that the country's legal system is so tedious and slow. The BIAC now promises them deliverance from such exasperation, troubles and costs. As an ADR mechanism that would facilitate the conflicting sides to sit face to face and thrash out their differences leading to a mutually acceptable outcome on both sides, this body can be an institution of great significance, if it functions effectively right at its initial stage of operation to win the confidence of the business operators of all sorts. In this process, it can contribute its best to finding a way to go around the notoriously slow legal system of the country. Both the plaintiff and the defendants stand to save enormously from making use of the BIAC. They would not need to appoint lawyers, pay their costly recurrent fees, and also court fees and other costs associated with the formal legal procedures. They would, thus, be saving on such counts by settling the matter through discussion between themselves and arriving at decisions that would have the consent of both sides and would be in accordance with the laws of the land. Furthermore, the BIAC through its operational activities in areas of arbitration, research and analysis and other services, can help achieve the goal of making the process successful and may, in selective cases, undertake mediation and conciliation. In this backdrop, it is important that arbitration has to become more popular in Bangladesh. An effective institution is important to make the system meaningful. But clients must also have to be made increasingly aware of the process and, therefore, be prepared to subject their cases to ADR. The BIAC at its initial stage of operation has to be extremely careful about running its affairs meticulously, so that institutionally it remains well-prepared to deliver its services to the satisfaction of its clients, actual or potential, meeting particularly the specific needs of target groups.