Call to promote arbitration as courts buckle under caseload

Experts at a seminar on Sunday emphasised the importance of promoting the use of alternative dispute resolution (ADR) and mediation, as they called for a comprehensive legal framework in this regard.

They stressed on adopting a more open mindset towards mediation and arbitration, and urged the government to review all bilateral agreements and ensure that future treaties include ample provisions for ADR to protect the country's interests.

The speakers came up with the recommendations at a seminar on 'Resolving Investment Dispute: Strategies for Successful Outcome and Need for a Robust ADR Framework' in Dhaka on Sunday, marking the 13th anniversary of the Bangladesh International Arbitration Centre (BIAC).

At the programme, BIAC Board Chairman Mahbubur Rahman said the Bangladesh Bank's directive to all banks to collaborate with arbitration centres like the BIAC would streamline financial dispute resolution and reduce the burden on our courts, benefiting both financial institutions and borrowers.

He also said that the increasing demand for the BIAC services reflected the growing acceptance and practice of ADR among commercial organisations and financial institutions in Bangladesh.

"With the judicial system in Bangladesh facing a backlog of over 4.2 million cases, ADR offers a much-needed alternative for resolving disputes swiftly and cost-effectively," he said.

Speaking as a special guest, former adviser to the caretaker government Abdul Muyeed Chowdhury said the people of the country collectively needed to develop a culture of mediation and arbitration to make it a success as a process of dispute resolution.

He also said that mediation is a very cost-effective process for dispute resolution.

Another special guest, High Court Division Judge Justice Khizir Ahmed Choudhury said the country's judicial system is an adversarial one where mediation can't work due to lack of mindset and orientation for those.

He also said in an increasingly globalised economy, investment arbitration has become a cornerstone for resolving disputes between investors and governments.

He mentioned investment arbitration should provide a neutral, predictable, and enforceable means to resolve conflicts that may inevitably arise.

As keynote speaker, Mr Nicky Balani, director of the Thailand Arbitration Centre, discussed strategies for achieving successful outcomes in investment disputes and emphasised the necessity for a robust ADR framework.

Muhammad A. (Rumee) Ali, vice-chairman of the BIAC, emphasised the significance of a collaborative approach in investment dispute resolution.

Former FBCCI president AK Azad said all should work together to popularise ADR as a dispute resolution.

Dhaka Chamber of Commerce and Industry (DCCI) President Ashraf Ahmed said there are nearly 211,000 cases worth $30 billion of commercial and trade disputes pending in courts.

He said a large portion of existing pending cases could be resolved through ADR.

"The country's all bilateral treaties and foreign investment protection act needs to revise and modernise as soon as possible to avoid impact of risky clauses which are detrimental to interest of Bangladesh," said Bangladesh Securities and Exchange Commission (BSEC) Commissioner Rumana Islam.

Former senior secretary of Legislative and Parliamentary Affairs Division Mohammad Shahidul Haque said the court did not use its power and scope of ADR despite there being provision for that.

Former Justice, High Court Division, the Supreme Court A.F.M Abdur Rahman said a favourable environment for robust ADR should be created by state machinery.

Supreme Court Advocate Forrukh Rahman underscored the need for setting up a specialised commercial court in the High Court with execution power.

Additional managing director of Eastern Bank PLC Ahmed Shaheen said ADR could play a vital role in resolving cases related to bad loans. Both borrowers and banks should have a mindset favourable to ADR.

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