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Tuesday, January 7, 2025
Founder : Barrister Mainul Hosein

Promote Alternative Dispute Resolution found effective in business cases

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The method of resolving disputes out of court is gaining popularity due to its time-saving and cost-effective nature. An increasing number of tax, business and family disputes have been resolved through alternative dispute resolution methods. In business, ADR has proven an effective mechanism worldwide when it comes to providing quick solutions to businesses and other disputes. According to NBR officials, around 50,000 tax-related cases involving over Tk 20,000 crore are pending with the courts. Of the amount, the majority is on disputes related to customs duties, followed by income tax cases. Officials said over 400 tax disputes were settled till the end of December last year.

People are coming to us to settle disputes under ADR, but their number is not very exciting. The government has stressed the need for the Alternative Dispute Resolution (ADR) to quickly dispose of cases. If the ADR system – in which cases are settled through compromises outside the court – can be used successfully in our country, the backlog of cases will come down. The government is considering to include appropriate rules in all official agreements for arbitration and mediation of all commercial disputes and has taken steps to give awards for both domestic and foreign arbitration in Bangladesh.

If we consider our present legal system in Bangladesh, we will see lots of cases are pending before the courts. It takes plenty of time to dispose of a suit through the present judicial procedures. Unfortunately, parties who are now involved in this eccentric process of the judicial system are completely frustrated by delays and lengthy proceedings. On the other hand, the ADR process is an advantageous and effective process than the court system in the sense that it helps to save the time of the parties and also saves the cost of court proceedings. Moreover, the parties are in a win-win position in the process of ADR and the relations between them do not get worse.

Hence this global best practice has a future in our country. It is necessary to organise trainings and create digital infrastructure required for popularising ADR.

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