Law Minister Anisul Huq today said that the government is committed to make the best possible business-friendly rules and regulations.
"Through alternative dispute resolution mechanism, we can get faster access to justice. Government is committed to make best possible business friendly rules and regulations. Arbitration Act 2001 may be revisited," he said.
The Law Minister said this while addressing a seminar on "Revisiting Arbitration Act for Promoting FDI in Bangladesh" as the chief guest organized by Dhaka Chamber of Commerce and Industry (DCCI) at its auditorium today.
Urging the business community to use the ADR, Anisul said that through an effective ADR mechanism, FDI regime will be improved a lot. He said that the Mediation convention will be signed. "CPC Act has already been amended... there should be a fixed time frame for arbitration proceeding," he added.
Speaking at the seminar as the special guest, British High Commissioner Robert Chatterton Dickson said that Bangladesh has done a tremendous progress especially in the last two decades. Moreover, he said Bangladesh would be graduated from the LDC group in next three years and reforms of arbitration act will help improve ease of doing business and that will attract FDI more.
After LDC graduation, he said Bangladesh would have to compete with other countries. "It's true that foreign investors need their investment protection while faster litigation process through arbitration and mediation are very effective. It's possible to reform commercial laws and it's possible to make improvement and in that case India could be a good example," he said.
The British High Commissioner said enforcement of contract remains the key challenge in improving the business climate in Bangladesh. "Once Bangladesh will work closely with international investors, regulatory and policy reforms with systematic improvement needs to continue on this business climate improvement trajectory," he further said.
DCCI President Barrister Sameer Sattar said a stable business environment featured by an efficient dispute resolution system is one of the pre-requisites for attracting FDI.
He said that in order to further promote the ongoing growth and success of the business climate; it is essential that a legal framework is established that enables swift and efficient contract enforcements, particularly in the context of cross-border commercial disputes.
"Therefore, it is essential to reform the Arbitration Act as the first step towards addressing such challenges existing in our legal atmosphere. With a rapid FDI stream in Bangladesh, the number of commercial disputes has risen significantly over the last few decades. As a result, arbitration has emerged as the pre-eminent mode of dispute resolution in recent times," he added.
Sameer said arbitration is meant to be a fast and cost-effective way of resolving commercial disputes and traditionally foreign investors have chosen arbitration over national court litigation when resolving cross-border disputes.
Barrister Ashraful Hadi, Advocate, Supreme Court of Bangladesh, presented the keynote paper. He recommended that the arbitral tribunal should have the same power as the court. He also said that the definition of "Court" under the Arbitration Act 2001 should include High Court in respect of international commercial arbitration.
Besides, payment method of stamp duty in all aspects should be digitalized, he added. He also underscored the need for a central database for arbitration proceedings for both domestically and internationally. "Bangladesh can become a suitable venue for arbitration among foreigners or foreign investors," he mentioned.
Ashraful also urged to formulate an international commercial court, so that disputes can be disposed of in a speedy manner.
Zaved Akhtar, CEO, Unilever Bangladesh Ltd. said that arbitration needs specialized resources and understanding of different aspects as well. He also proposed for a smart arbitration model with digitized mechanism. "Moreover awareness is very crucial to make it more familiar among the business community," he said.
Yasir Azman, CEO, Grameenphone Ltd. said that for arbitration predictability, certainty and protection of investment are important. Arbitration Act 2001 was laudable initiative, but now its needs reforms. He further stressed on digitalization and technology for faster use of arbitration act.
Promod Nair, Advocate of India, said that India has made amendment in their Arbitration Act and after that reforms their position in the ease of doing business index has been improved. He also informed that India has separate commercial courts to deal with business disputes only.
Source: Bangladesh Sangbad Sangstha