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November 1, 2023

How Alternative Dispute Resolution Can Save Time and Money in Bangladesh

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Alternative Dispute Resolution (ADR) has garnered significant traction in Bangladesh over the past few years as a cost-effective and efficient method to resolve conflicts and disputes. Alternative Dispute Resolution methods have become indispensable for individuals, businesses, and the judiciary in a country with a growing population and a complex legal system. This article examines how Alternative Dispute Resolution can save time and money in Bangladesh, shedding light on the various ADR mechanisms, their benefits, and the expanding trend towards their adoption.

The Problem of Alternative Dispute Resolution in Bangladesh

Bangladesh, with over 160 million inhabitants, is a densely populated and swiftly developing nation. The complexity of business transactions, contractual disputes, land-related issues, and interpersonal conflicts increases as the economy expands. The formal legal system, although well-established, often struggles to maintain pace with the increasing caseload, leading to lengthy court proceedings and accumulating backlog. This congestion not only delays justice, but also imposes substantial financial and emotional costs on litigants.

Impact of Delayed Dispute Resolution on the Economy

The traditional court system in Bangladesh is known for its sluggish and protracted legal proceedings. Before their cases are resolved, litigants frequently wait for years, causing immeasurable frustration and financial distress. These delays have substantial economic consequences, especially for enterprises and investors.

Lengthy legal proceedings result in opportunity costs because businesses and individuals cannot concentrate on productive activities. Instead of being invested in growth and development, resources are held down in litigation.

Legal Fees: Protracted litigation increases legal fees. Attorneys bill clients for their time and effort, which increases as cases linger on. This additional cost can be devastating for many litigants, discouraging them from pursuing legal remedies.

Reputational damage: A protracted dispute can damage a company’s reputation on the market, resulting in the loss of customers and business partners. This can have a long-lasting impact on profitability.

Stress and Emotional Toll: The emotional stress of protracted litigation is a significant cost that negatively impacts the mental health of individuals and their families. This emotional cost is frequently underestimated, but it can be substantial.

Alternative Resolution of Conflict in Bangladesh

Alternative Dispute Resolution (ADR) provides a method for mitigating these obstacles and provides a more efficient, cost-effective, and accessible means of resolving disputes. Alternative Dispute Resolution incorporates numerous techniques, including mediation, arbitration, conciliation, and negotiation. These mechanisms seek to resolve disputes outside of the traditional court system, and they have acquired a great deal of popularity in Bangladesh for the reasons listed below.

One of the primary benefits of ADR in Bangladesh is the rapid resolution of disputes. Mediation, for instance, can frequently result in a resolution within a matter of weeks or even days, whereas the formal court system may take years. This expedited process reduces opportunity costs, legal fees, and emotional duress for the parties involved.

Cost-Effective ADR methods are typically more cost-effective than litigation. For example, in mediation, a neutral third party assists the parties in reaching a mutually acceptable resolution. The cost of hiring a mediator is substantially less than the cost of protracted litigation with expensive attorney fees. In addition, Alternative Dispute Resolution can be adapted to the financial resources of the parties, making it accessible to a broad spectrum of individuals and enterprises.

Less Formal and Awe-Inspiring

The formal judicial system in Bangladesh can be intimidating, particularly for those unfamiliar with legal procedures. Alternative Dispute Resolution is less formal and more conducive to frank communication between the parties. This informal environment encourages a cooperative approach to dispute resolution, nurturing greater understanding and agreement.

Customized Solutions

ADR enables for more adaptable and individualized dispute resolutions. Typically, court decisions are either a victory or a defeat. ADR, however, provides space for innovative solutions that may not be possible in a courtroom. Parties can concur on remedies that meet their specific requirements, thereby preserving their relationships and business interests.

In a culture where personal and business relationships frequently intersect, it is crucial to maintain these connections during and after a dispute. ADR methods, particularly mediation and conciliation, foster cooperation and understanding, increasing the likelihood that parties will maintain positive relationships.

Advancement of ADR in Bangladesh

The government of Bangladesh recognizes the potential of alternative dispute resolution to reduce the burden on the formal legal system and is taking measures to promote and institutionalize ADR techniques. Among the initiatives are the following:

Legal Framework: The Arbitration Act of 2001 governs arbitration proceedings in Bangladesh. The law endeavors to provide a clear legal framework for arbitration and to ensure that arbitral awards are enforceable.

ADR Centers: ADR centers offering facilities for arbitration and mediation have been established in key cities. These institutions provide a conducive environment for alternative dispute resolution proceedings and are staffed with experienced mediators and arbitrators.

In certain circumstances, the judiciary has mandated mediation before proceeding with litigation. This approach seeks to reduce the court’s caseload and encourage parties to consider ADR.

Training and Awareness: Efforts have been made to train legal professionals and justices in ADR methods. This contributes to the efficient administration of ADR and raises legal professionals’ awareness of its benefits.

Bangladesh is a member of international organizations such as the United Nations Commission on International Trade Law (UNCITRAL), and it collaborates with these organizations to ensure that ADR practices conform to international standards.

Success History

Several success stories in Bangladesh emphasize the efficacy of ADR in resolving complex disputes and saving time and money. These cases demonstrate the potential of ADR to address a broad spectrum of issues, from commercial disputes to family conflicts.

Commercial Disputes: Arbitration and mediation have been used to resolve a significant number of commercial disputes in Bangladesh. ADR’s efficiency and cost-effectiveness have allowed businesses to concentrate on their primary activities.

Family matters, such as inheritance disputes and divorce settlements, have also been resolved successfully through mediation. ADR techniques enable families to reach amicable resolutions without the emotional and financial strain of a lengthy legal battle.

Land Disputes: Land-related disputes are common in Bangladesh and frequently result in protracted legal confrontations. Land disputes have been successfully resolved through mediation, promoting peaceful coexistence among neighbors and family members.

While ADR has made significant advances in Bangladesh, it is not without its challenges. Some of the primary obstacles include:

Awareness and Education: In Bangladesh, many individuals and enterprises are unaware of Alternative Dispute Resolution options and their benefits. There is a need for increased efforts to educate the public about ADR methods and their benefits.

To meet the rising demand for Alternative Dispute Resolution services, it is necessary to increase the number of trained and experienced ADR professionals, including mediators and arbitrators.

Cultural Resistance: Some segments of society may still have reservations about ADR methods, considering them less authoritative or traditional compared to the formal court system. It is necessary to resolve cultural resistance through education and advocacy.

Despite the fact that the Arbitration Act of 2001 provides for the enforcement of arbitral awards, there may still be challenges in practice. Streamlining the administrative procedure and guaranteeing prompt enforcement of


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