Clauses for arbitration will be there in all govt contracts

Minister for Law, Justice and Parliamentary Affairs Anisul Huq on Saturday said the government has decided in principle to incorporate appropriate clauses for arbitration and mediation in its all contracts.
He also said the government has taken steps to ensure that both foreign and local arbitration awards can be enforced in Bangladesh.
"We are encouraging all government entities to choose Bangladesh at the first instance as the place of arbitration for resolution of any disputes," he said while speaking at a seminar.
Bangladesh International Arbitration Centre (BIAC) organised the seminar styled "Effective ADR Process to Resolve Financial Disputes for a Sustainable Financial Sector" at a city hotel, marking its 8th founding anniversary.
Law Minister Huq also stated that BIAC has been able to develop neutral, efficient and dependable dispute resolution service in the country.
As the country's first and only alternative dispute resolution (ADR) institution, BIAC has been playing a vital role in resolving commercial disputes amicably for last eight years of its operation.
Speaking at the seminar, Commerce Minister Tipu Munshi said the recommendations put forward at the seminar will definitely help the BIAC improve Bangladesh's rank in World Bank's Doing Business Index.
He also stressed the need for interaction between BIAC and presiding officers of courts, lawyers and jurists through seminars and workshops.
BIAC Chairman Mahbubur Rahman moderated the seminar.
He said, "We should resort to a system that would allow us to resolve financial disputes and enforce contracts through expeditious and cost-effective manner."
He informed that a committee formed by the Bangladesh Bank comprising BIAC, Bangladesh Bank and Association of Bankers, Bangladesh has submitted a draft guideline for the banks in Bangladesh to resolve financial disputes in banking institutions using ADR.
The guideline is under active consideration of the central bank, Mr Mahbub said.
He added that BIAC has received recognition by signing cooperation agreement with the Permanent Court of Arbitration, the Hague, the Netherlands which is the first permanent intergovernmental organisation to provide a forum for the resolution of international disputes through arbitration and other peaceful means.
At the beginning of the session, welcoming the guests, BIAC's Chief Executive Officer Muhammad A (Rumee) Ali gave a brief account on BIAC's activities and achievements in recent years in introducing globally-accepted best practices of ADR to resolve financial disputes in the country.
He insisted that for a sustainable financial sector, ADR can play a significant role in pre-empting disputes before going to courts.
Managing Director of Thailand Arbitration Center (THAC) Pasit Asawawattanaporn in his speech said the THAC and BIAC established collaboration to cater the need of dispute resolution in businesses, commerce and potential trade roles across Asia and have been working together to promote ADR through organising trainings and conferences to increase ADR awareness.
Practice Manager of Finance, Competitiveness and Innovation at International Finance Corporation (IFC), Singapore Paramita Dasgupta in her speech said IFC strongly believes that availability of efficient contract enforcement mechanisms, both through formal court procedures and out of court mechanisms, are fundamental for the proper functioning of market economies.
Dean at Under Grad Laws of University of London, UK Professor Simon Askey in his speech opined that a sustainable approach to arbitration must recognise that arbitrators are appointed because they can work in ways that parties are locally familiar with and which take account of shared attitudes of the parties.
Barrister at Law, Advocate of Appellate Division of the Supreme Court Dr. Khaled Hamid Chowdhury in his speech said mediation is one of the most effective methods of ADR as it is entirely controlled by parties involved, voluntary and flexible.
Managing Director of IFIC Bank Ltd M. Shah Alam Sarwar said given both the bank and the borrower are willing to rely on such a level of expertise to enforce their long-term relationship, institutional ADR will bring in better prospects of doing business, for both parties.
Managing Director of The City Bank Ltd. Mashrur Arefin said if pre-litigation mediation and arbitration is ensured, the burden on the courts will be lessened to a great extent and that will result in the reduction of the backlog of cases.
The seminar was attended, among others, by former Chief Justices, Judges of the Supreme Court, business leaders, prominent lawyers, representatives of corporate houses, government officials, senior executives of banks and insurance companies, academicians, representatives of diplomatic missions, heads of regional ADR institutions, international organizations and media.
Legislative and Parliamentary Affairs Division Senior Secretary Mohammad Shahidul Haque, and Board Members of BIAC Osama Taseer and Nihad Kabir were also present.
In the past 8 years, BIAC has been trying to create awareness among the legal and business community.
Since 2011, BIAC has organised over 100 seminars and workshops; 56 training programmes on arbitration, mediation and negotiation; administered 267 hearings and meetings of ADR cases.
BIAC has received recognition from 14 International ADR institutions and 25 leading corporate companies, banks, financial institutions, law chambers, universities and NGOs in the country by signing cooperation agreements.
Mahbubur Rahman, Chairman of BIAC, is the only Arbitrator from Bangladesh appointed by the China International Economic Trade Arbitration Commission (CIETAC).
Bangladesh Bank has recognised BIAC as an ADR institution through an advisory letter issued in April 2016, where the central bank urged all banks to include ADR clause in their loan and commercial contracts and suggested that in resolution of disputes through ADR methods, the banks may use BIAC's ADR clause.

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